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Apple allegedly started killing off Facebook ad revenue after the company refused to share its sales

Apple blocked Facebook ad after company refused to give it a share

Apple allegedly started killing off Facebook ad revenue after the company refused to share its sales. According to a Wall Street Journal article, it was the disagreement that led to the iPhone maker to start applying checks as some sort of pay-back.

As the report goes, Apple had wanted a cut of Facebook’s ad revenue such as boosted posts. Its argument was that since people were paying the social media platform to reach more users, it was an in-app purchase. As such, they deserved a part of the earnings, likely, the notorious 30 per cent cut.

However, Facebook had argued otherwise. It rejected the cut proposal. Ultimately, this meant that Apple would not let it continue operating freely as it did before.

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It turns out that this is not an isolated incidence. The CEO of Automattic, which owns Tumblr, Matt Mullenweg, also said that it had faced the same predicament. Apple had prevented it from offering boosted post features until it agreed to offer them as in-app purchases.

“FWIW, @automattic’s boosted post feature on @tumblr (called Blaze), which is in spirit like Facebook’s, was rejected until we implemented it as IAP and gave the 30% cut,” Mullenweg says.

So, while Apple appears to be prioritising privacy, it seems to have not stemmed from the right place. Significantly, after iPhone started offering users the option to stop apps from tracking their usage, Facebook ad revenue took a nosedive.

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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.