Meta Imposes 30% Apple Tax Fee on Posts Boosted In iOS

Meta has unveiled a new policy affecting businesses that boost their posts on Facebook and Instagram on iOS devices.

Facebook's parent company announced Thursday that it will impose an additional 30% service charge on such transactions, which will be directed to Apple, the operator of the App Store.

In response to Apple's updated guidelines announced in 2022, the Zuckerberg-owned company is set to implement these changes in the US this month, with plans to extend the policy to other markets later in the year. 

"We are required to either comply with Apple's guidelines or remove boosted posts from our apps," Meta stated in a blog post.

As part of the adjustment, advertisers will now be billed directly by Apple for boosted posts on iOS devices and will be required to pay in advance rather than after the ads run.

How to Avoid the Apple Tax

Meta emphasized its commitment to supporting small businesses, arguing that removing the boosting feature would hinder their ability to promote their content effectively.

More importantly, it also stated a way for businesses to avoid paying the additional 30% tax imposed by Apple.

"Specifically, advertisers can access Facebook.com and Instagram.com on both desktop computers or a mobile web browser to boost their content," Meta wrote.

"When doing this, they will have all the same features as boosting posts from the iOS apps, except now they will avoid the Apple service charge."

Boosted posts, a popular feature offered by the tech giant, allow businesses to enhance their content visibility without engaging the Ads Manager tool, which typically involves creating and purchasing ads through campaigns.

Apple Defends Tax on Boosted Posts

Apple defended its policy, stating, "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."

The tech giant also emphasized that many apps successfully implement in-app purchases for digital services.

However, Meta customers have an alternative to bypass Apple's charges by using the separate Meta Ads Manager app, exempt from Apple's commission requirements as it falls under the category of advertising campaign management apps.

Despite the change, Meta seeks to maintain accessibility and effectiveness for businesses looking to boost their Facebook and Instagram posts on iOS and other platforms.

"We are committed to offering businesses flexible and convenient options to help them navigate this change and maximize the results of their ad spend," the company explained.

Editing by Katherine 'Makkie' Maclang