Meta vs. Apple: New Ad Guidelines Aim to Bypass App Store Commissions
Portfolio Pulse from Anusuya Lahiri
Meta Platforms Inc (NASDAQ:META) has introduced guidelines for small businesses to bypass Apple Inc's (NASDAQ:AAPL) App Store commissions by purchasing ads through a web browser. This move, aimed at avoiding Apple's up to 30% cut from in-app purchases, escalates the rivalry between the two tech giants. Apple's strict policies have been criticized by other companies as well, including Spotify Technology SA (NYSE:SPOT). Meta's ad revenue has been significantly impacted by Apple's privacy changes, with an estimated loss of $10 billion. The new ad purchasing policy will initially apply in the U.S. and expand to other regions later this year.
February 15, 2024 | 7:06 pm
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NEGATIVE IMPACT
Apple's App Store commission policies are bypassed by Meta's new ad guidelines, potentially affecting Apple's revenue from in-app purchases.
Meta's move to guide advertisers to bypass Apple's App Store fees could lead to a decrease in Apple's revenue from in-app purchases. This strategy by Meta not only intensifies the rivalry between the two companies but also puts pressure on Apple's revenue model, potentially leading to a negative short-term impact on Apple's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Spotify, along with other companies, has criticized Apple's App Store policies, aligning with Meta's recent actions to bypass these fees.
While the article mentions Spotify's criticism of Apple's App Store policies, there is no direct short-term financial impact on Spotify from Meta's new ad guidelines. However, Spotify's alignment with Meta in criticizing Apple's policies could influence the broader tech industry's stance on App Store commissions and digital market practices.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Meta introduces new ad guidelines to bypass Apple's App Store fees, potentially reducing the impact of Apple's commission on its revenue.
By introducing guidelines that allow small businesses to bypass Apple's App Store commissions, Meta could potentially reduce the financial impact of these fees on its revenue. This strategic move could also enhance Meta's attractiveness to advertisers, potentially leading to an increase in ad sales and a positive short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90