Here’s an important PSA for Facebook and Instagram advertisers: From next week, when you purchase ads via an iOS device, you’re going to have to pay an extra 30% fee that goes direct to Apple, unless you purchase via facebook.com or instagram.com on desktop instead.
The change was first rolled out to U.S. advertisers back in February, and is now being expanded to all advertisers in all regions. Meta has implemented new processes on the web to facilitate boosting, while avoiding Apple’s extra charges, with all the same functionality that’s available on iOS devices. And if you want to avoid paying the extra fee, you’re going to have to switch to a desktop PC, as opposed to quickly boosting in-stream.
Meta’s Director of Privacy & Fairness Policy Pedro Pavón says that Apple’s implementing its new fee structure in more regions as of July 1st, which he has criticized as an anti-competitive move.
As per Pavón:
“The 30% Apple tax gives them an unfair advantage over competitors, making it harder for them to compete on pricing. None of this strikes me as a good outcome for users or fair dealing with competitors. And I'm not the only one who thinks so. Regulators worldwide are siding with app developers and consumers who stand to benefit from more choices and lower fees.”
Pavón further notes that EU investigators have already leveled charges against Apple for the change, while a federal judge in the U.S. has also criticized Apple for failing to comply with a court order relating to its fee structure.
But as of right now at least, Apple is going to charge advertisers more when they buy ads in-app.
So, the simple solution is to wait till you can access your desktop PC to avoid the extra costs, though that won’t always be an option for those working on the go. Which is what Apple’s relying on, and it does seem like Apple is tilting the scales in its own favor here, at least to some degree.
But Apple’s view is that these companies would have no access to their audiences without its platform, so it’s entitled to charge for that capacity.
Many businesses have pushed back, including Epic Games, the maker of Fortnite, which took Apple to court over its app taxes. The final outcome in that case was that Apple implemented new concessions that now allow app makers selling to U.S. customers to add links and buttons inside their apps which re-direct users out to an external website, where they can input their credit card information. But Apple also implements pop-up security warnings when doing so, while it also stipulates that Apple Pay must be listed as an option on these pages.
Meta can seemingly also implement the same, but it’s not exactly a solution, and it only applies in the U.S. at this stage.
Essentially, if you’re purchasing Facebook and IG ads through your device, you’ll probably want to update your approach.
Meta has also provided an overview of how to avoid paying Apple’s taxes here.
