Apple and Facebook considered a subscription service to remove ads

Apple and Facebook considered a subscription service to remove ads

In recent years, Facebook and Apple have publicly traded barbs. As a reminder, the Cupertino giant announced at WWDC 2020 that iOS 14 would have new privacy policies, preventing the social network from showing personalized ads to its users.

According to an article by The Wall Street Journalbefore all the fuss, Apple would have approached Facebook with a proposal for a partnership that would benefit both.

the article of The Wall Street Journal says Apple and Facebook considered creating a subscription service that would offer an ad-free version of the platform. As the Cupertino giant takes a portion of in-app purchases, including subscriptions, it could have a very lucrative deal for Apple.

However, one point discussed that led to disagreements between the two companies was Apple taking a portion of the boosted posts, paid publications to appear to a much wider audience. Facebook considers this type of material part of its advertising portfolio, with small businesses using the practice frequently.

The problem occurred when Apple considered that this type of post would also count as “in-app purchases”, being subject to taking 30% of the entire collection. However, Facebook disagreed and said the posts did not fit the Cupertino giant’s requirements.

Reproduction: The Wall Street Journal.

Since iOS privacy changes took effect in 2021, the research agency Insider Intelligence suggests that 37% of iPhone users have allowed companies to track their activity in apps.

The impact of the new policies caused Meta’s revenue to shrink significantly. In January 2021, the CEO of Meta upped the ante and said that Apple wanted to hurt Facebook with its changes. According to estimates, the company of Mark Zuckberg would have led to a loss of US$ 10 billion (~R$ 50 billion)driving down the value of its shares.

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