Apple Reportedly Sought Revenue Share From Ad-Free Facebook Subscription
A new report reveals that Apple and Facebook previously negotiated a partnership for an ad-free, paid version of the social network. The discussions also included a dispute over whether Apple should take a cut of boosted posts.
A new report reveals that Apple and Facebook negotiate a partnership for an ad-free, paid version of the social network before their public feud over privacy. Under this proposed arrangement, Apple receives a standard cut of the in-app subscription revenue because the service operates through the App Store. This deal represents a potential way for Apple to generate significant income from Facebook's massive user base without relying solely on ad tracking.
The two tech giants also clash over how to classify "boosted posts," which allow users to pay to increase the reach of their content. Apple argues that these boosted posts function as in-app purchases and therefore require a 30 percent commission. Facebook firmly maintains that boosted posts are advertising products and remain exempt from Apple's standard fees, creating a major point of contention between the companies.
These discussions take place between 2016 and 2018, long before Apple implements its controversial App Tracking Transparency feature in iOS 14.5. Since that privacy change goes into effect, Meta experiences a severe revenue decline and reports its first-ever drop in quarterly revenue. Today, Apple continues to champion user privacy while Meta relies entirely on advertising as it pursues its metaverse ambitions.