Apple demands 30% cut of sponsored social posts in another blow to meta

Apple released an update for its payment Rules Monday calling for that Apps use theApp purchase tool for “boosts” and promoted posts, meaning Apple will keep 30% of sales. The move appears to be another policy aimed squarely at Meta (formerly known as Facebook).

A variety of apps allow users to promote their content for a small fee. Do you want more people to see your tweets, dating profile, or that old video game you’re trying to sell? Twitter, Tinder, and eBay will sell you a “boost” to get it higher in the feed. For years, this seemed to fall into a gray area in the App Store’s policies. Apps that sell “virtual goods”. must around theApp payment system that comes with a high service fee. That has been the case for a long time. But that policy wasn’t always enforced when it came down to it to Boosts, and certain apps, like Facebook, got away with taking payments directly and bypassing Apple’s massive fee. Apple declined to comment.

Some apps, including Twitter and Tinder, are already using theApp payment tool for boosts and promoted posts, but not Facebook. Apple probably would make a nice chunk of change when it starts enforcing that policy more strictlyalthough meta can contest the change. The social media giant already is entangled in a public battle with Apple over its recent policy changes, and the the Adaptation to in-app payment requirements will pour fuel on the fire. Another iPhone policy change last year cost Meta billions of dollars in lost ad revenue, which Apple is now gobbling up through a series of new advertising projects.

This new update is aimed at Advertising that increases the visibility of social media postsbut there is a carvingto more traditional types of ads, so Meta’s larger business model is unaffected by this move. TThe policy is an example of Apple’s market power. They control the App Storeand that is the only official way to get your app on iPhones. Apple can basically charge developers whatever they want as long as they get away with it. In some places, it doesn’t get away with it: South Korean law enforcement agencies raided Apple’s headquarters after a persistent search Complaints about overloading of iOS Developer. Meta declined to comment.

Updating the Boosts Policy is part of a broader effort to take action Apps, forcing developers to kiss Apple’s ring and the in-App payment system or risk being thrown out of the market.

Regulators in other countries, where competition rules are far stricter, have forced Apple to allow apps to use other payment systems that don’t incur as big a hit in revenue. Google was scrutinized for similar policies on its Play Store and was even fined $113 million this week for not allowing third-party payments. Last year Epic Games won a Big lawsuit against Apple after Fortnite was kicked from the App Store for providing third-party payment options. A judge ruled that Apple cannot prevent app developers from including links to other payment systems.

Apple says it is take this money just to protect you. The company checks apps for security, privacy, and fraud issues, including checking into payment systems. CEO Tim Cook has argued that maintenance is expensive, and a 30% cut is a reasonable fee as the money is needed to protect consumers, which also benefits developers as it creates a trusted marketplace.

Apple did it invent the app store. Proponents (and Tim Cook) the companies argue should be able to charge whatever it is want. But put another way, the App Store isn’t a singular regular service but the portal to any other iPhone app. Critics say 30% is a lot more than Apple has to pay for app verification, and what’s really going on here is a stamping-around monopoly demanding protection money for anyone trying to get through Cupertino’s gates.