Monday, Aug 15, 2022, 23:33 Economy

Report: Apple Wanted Ad-Free Subscription Model For Facebook – Along With Share Of Revenue

The relationship between Facebook's parent company, Meta, and Apple has – to put it lightly, been somewhat strained. Meta CEO Mark Zuckerberg has yet to tire from stressing his belief that Cupertino's automatic share of the revenue from in-app purchases on the Apple App Store platform is wrong. Additionally, Apple's isolated ecosystem apparently conflicts with Facebook's approach. There was significant displeasure from the social media network due to the "App Tracking Transparency" measure introduced with iOS 14.5: To be precise, it prevented Facebook from unrestrictedly targeting customers with advertisements using personal data. A recent report from The Wall Street Journal reveals that Apple was quite interested in Facebook's advertising revenue – and hoped to dip into the profits itself.

Talks Between Apple & Facebook Bore No Consensus
According to The Wall Street Journal, Facebook (now "Meta") and Apple partook in negotiations between 2016 and 2018. The Apple negotiators hoped to develop a "shared business model". One possible option said to have been mentioned: Facebook could offer an ad-free subscription model processed via the App Store. For Cupertino, the lucrative income source would have amounted to a pretty penny, thanks to its 30% commission on in-app purchases. However, the parties failed to meet an agreement and ran into disagreements concerning "boosted posts" – or posts in which users have invested money to reach a larger target audience. Facebook considered these to be a form of advertisement, whereas Apple considered them to be in-app purchases.



Meta Decides Against Shared Business Model With Apple
During the same time frame, Facebook had considered changes to data protection – although the company later discarded these to not endanger its advertising business. A spokesperson from Meta explained to The Wall Street Journal that the company has undertaken essential measures over the last five years to protect user data. Finally, Meta does not allow other companies to partake in its decision-making process.

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