Battle Of The Giants: Facebook Parent Hits Back At Apple As New App Store Rules Risk Ad Revenue

Meta Platforms Inc. META has slammed Apple Inc. AAPL for seeking to take a significant portion of social-media advertising revenue, as part of its new App Store guidelines.

What Happened: Following Apple's updated App Store Review Guidelines, Meta has called out the Cupertino-based tech giant for "undercutting others in the digital economy," according to Bloomberg. 

The update introduced this week requires users and advertisers to make an in-app purchase when they pay to "boost" posts in apps like Instagram and TikTok. Apple will take a commission of 30% on in-app purchases, which will have detrimental effects on the ad revenue of companies like Meta. 

"Apple previously said it didn't take a share of developer advertising revenue, and now apparently changed its mind. We remain committed to offering small businesses simple ways to run ads and grow their businesses on our apps," Meta said.

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In contrast, Apple, which is working on building its advertising business, said that requiring an in-app purchase for boosts is simply an extension of existing policies – something other apps already comply with, the report noted. 

"Boosting, which allows an individual or organization to pay to increase the reach of a post or profile, is a digital service – so of course, in-app purchase is required. This has always been the case, and there are many examples of apps that do it successfully," Apple stated. 

Why It's Important: This isn't the first instance that has made social media companies fume over Apple's policy changes. Earlier, Apple announced privacy changes to iOS software, costing $10 billion headwind to Meta's business. 

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