Meta charging 30% fee on boosted posts in iOS apps
Meta has announced that starting later this month, advertisers will face a 30% fee when boosting the visibility of their posts, on Facebook and Instagram's iOS apps. This decision comes in response to Apple's 2022 App Store update, which extended the company's usual 30% cut to include boosted posts, essentially treating them as digital purchases. Meta's decision is bound to have a negative impact on small businesses.
Apple's role and Meta's response
In a statement to The Verge, Meta explained that business owners who want to buy a boost on iOS will be billed through Apple. The latter will "retain a 30% service charge on total ad payment, before any applicable taxes." To dodge this fee, users can purchase boosts on Instagram/Facebook's websites via desktop or mobile. Meta added that they must either "comply with Apple's guidelines or remove boosted posts from our apps," but they don't want to remove the feature.
New payment process for boosted posts
Meta also revealed that users who desire to boost posts via its iOS app, will be required to add prepaid funds and pay for the boosted posts before they go live. An extra 30% will be charged to cover Apple's transaction charges for preloading funds in iOS. This new payment procedure will first be introduced in the US and later expand to "additional markets and countries" throughout the year.
'In-app purchase necessary for boosting'
"We have always required that purchases of digital goods and services within apps must use In-App Purchase," said Apple spokesperson Adam Dema in a statement to The Verge. "Boosting, which allows an individual or organization to pay to increase the reach of a post or profile, is a digital service — so of course In-App Purchase is required. This has always been the case and there are many examples of apps that do it successfully," he added.
