Apple and Meta (formerly Facebook), at loggerheads over privacy changes to iOS and the App Store, once planned to “build a business together”, where Apple was discussing with the Mark Zuckerberg-run social network how it would Earn more money from your advertising income.
According to a report in The Wall Street Journal, Apple and Facebook “discussed revenue-sharing arrangements, including a potentially ad-free, subscription version of Facebook”.
They discussed creating a subscription-based version of Facebook that would be free of ads.
Apple also reportedly argued that it is entitled to a cut of portions of Facebook’s advertising revenue from so-called “boosted posts.”
Boost allows a user to get paid to increase the number of people who see a post on Facebook or Instagram.
“Apple, which does not cut advertising from developers, argued that Facebook Boost should be considered for in-app purchases,” the report said late Friday.
The tech giant could not reach an agreement on discussions that took place “mostly” between 2016 and 2018.
Facebook is struggling to patch its ad-tracking system after Apple brought tough privacy changes to its App Store.
Apple introduced the “Ask App Not to Track” prompt as part of iOS 14.5 in 2021, which has had a significant impact on various companies, including Meta, which states that Apple will lose $10 billion in 2022 from iOS privacy changes. Will cost.
Meta CFO David Wehner said earlier this year, “We believe the impact of iOS as a headwind on our business is on the order of $10 billion in 2022, so it’s a big deal for our business.” There is significant headwind.”
Apple’s iOS 14.5 update, released in April 2021, comes with the App Tracking Transparency (ATT) feature, which has impacted digital advertising for the tech giant.
According to the WSJ report, Apple’s privacy move resulted in a “sharp business slowdown that shaved nearly $600 billion off the company’s (meta) market value in less than a year”.
A spokesperson for Meta said the company has “made significant changes over the past five years to protect people’s data, as well as allow businesses of all sizes to grow”.
Apple, Meta plan to build business together once more: Report first appeared on BGR India.