Joint Plans Made by Apple and Facebook Revealed

Apple and Facebook have been at odds for several years. Finally, at WWDC 2020, Apple gave iOS users the right to choose whether to watch ads between apps. Facebook, on the other hand, was not happy with this move made by Apple. And it opposed this decision of Apple. But this feature was released in iOS 14.5 in April of 2021. According to a new report released, Facebook and Apple were trying to agree on a partnership and revenue sharing before all this happened.

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Joint Plans of Companies Revealed

According to this published report, Apple and Facebook were working together to launch an ad-free version of the platform and a subscription service for this version. Apple is taking a cut on in-app purchases, including subscriptions. For this reason, a secret partnership was on the agenda between the two companies on an arrangement that could be very lucrative. In another discussed arrangement, Apple would get a share of the upgraded posts, which meant paying a fee to bring a post to a wider audience. Likewise, Facebook has been launching its featured posts for a long time as parts of its own advertising portfolio. Smaller businesses are using boosted posts a lot to reach more people overall, as the report points out.

Insider Intelligence, a research firm, rolled out user tracking changes in 2021. Since then, it has been reported that 37% of Apple users prefer to watch ads. Facebook's revenue growth has declined significantly since this change took effect. In the last quarter of the year, Meta reported the first revenue decline in the company's history. Apple also positions itself as an advocate of privacy in this area and tries to do its best in this sense.

Apple Didn't Get What It Wanted

As it is known, today, among the income sources of the Cuppertino-based technology giant, there are commission fees received from subscriptions and applications. According to the source, Apple, which requested a subscription package that eliminates ads from Facebook between 2016 and 2018, also planned to receive a commission by showing "upgraded posts" on its platform as an in-app purchase.

In the conversations held, it was reported that Facebook gave a negative response to the stated requests. However, the advertising restrictions from the Apple front caused a huge blow to the revenues of the social media giant. Full details are unknown, as the talks took place between 2016 and 2018. But Facebook continues to see a significant drop in revenue growth since the new change was introduced.