Tech giants Apple and Meta (formerly Facebook), which are currently at odds over privacy changes in iOS and App Store, once intended to “build businesses together”. However, Apple was present in discussions with the social network led by Mark Zuckerberg on how it could derive more capital from its advertising revenue.
According to a Wall Street Journal report, Apple and Facebook have been reviewing “revenue-sharing agreements, including a possible ad-free subscription version of Facebook.”
They talked about creating a subscription-based version of Facebook that would be ad-free. Apple also reportedly claimed that it was entitled to a reduction of certain fractions of Facebook’s advertising revenue from so-called “boosted posts”.
A boost allows a user to respond to an increased number of people who see a post on Facebook or Instagram. “Apple, which does not take a share of developer advertising, argued that Facebook Boosts should be considered in-app purchases, according to a person familiar with the matter,” the report announced Friday evening.
The tech giants couldn’t reach a consensus on discussions that “mostly” took place between 2016 and 2018. Facebook is trying to fix its ad tracking systems after Apple made major changes to the privacy in its App Store.
Apple introduced the “Ask App not to Track” prompt as part of iOS 14.5 in 2021, which had a critical impact on various companies, including Meta who said Apple iOS privacy changes would cost it $10 billion in 2022.
“We believe that the overall impact of iOS as a headwind on our business in 2022 is in the order of $10 billion, so that’s a pretty significant headwind for our business,” the Meta reported. CFO David Wehner earlier this year.
Apple’s iOS 14.5 update, released in April 2021, came with an App Tracking Transparency (ATT) feature that influenced its digital promotion for tech giants.
According to the WSJ announcement, Apple’s privacy decision came amid a “severe economic crisis that has reduced the company’s market value by approximately $600 billion (Meta) in less than a year.”
A Meta spokesperson said the company had “made significant changes over the past five years to protect people’s data while enabling businesses of all sizes to grow.”