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Apple Wanted A Share Of Facebook’s Ad Revenue Before Holding Back Its Ad Sales

Apple and Facebook aren’t the best of friends as you can imagine but past history is uncovering some interesting secrets about the duo’s business relationship.

Apple had once informed Meta’s Facebook about how it deserved a share of the company’s ad revenue. Moreover, the leading iPhone maker was seen referring to it as a type of in-app purchase that it claims needed to be shared with the company.

Obviously, Meta disagreed and began to argue in detail about how that was wrong and unfair. And this report was confirmed by The Wall Street Journal too.

Apple carried on arguing about how the ads being discussed were more or less boosted posts where users spend their own funds to have their content promoted and received by different audiences. And for that reason, they needed a chunk of the profits because it was their App Store.

Thankfully, Meta managed to convince the tech giant of how ads are something that Apple can’t steal a share from and they ended up winning the argument. Still, the way Apple was in discussion with Meta’s company and how it talked about ways of making more money through the App Store is definitely eye-opening.

But wait, the drama doesn’t end there. Apple did not only want a share of Facebook’s boosted sales in the past. Tumblr’s CEO claims that the company was seen rejecting its offer of new boost-like functionalities. As soon as the features were converted to in-app purchases, Apple suddenly flipped 360 degrees and spoke about how they were now interested.

This meant Apple would be receiving a 30% cut and they couldn’t be happier.

Meanwhile, it was also observed how both Apple and Meta ended up having chats linked to a possible subscription plan on Facebook too. This would end up removing ads across the app, which would also benefit Apple along the way.

In case you’re wondering how, well, Apple would be capable of earning revenue via subscriptions bought through the Facebook app. But things didn’t go as planned and both firms failed to reach an agreement on the ideas put forward.

WSJ says the conversations date back nearly six years back, occurring between the 2016 to 2018 timeframe.

Both companies are yet to respond to any requests for comments which does make sense. They are literally polar opposites of one another in terms of ads. Moreover, Apple’s recent ATT policy has drastically affected Facebook negatively too.

Remember, Facebook puts great emphasis on ads for its successful business as that’s where most of the revenue arises from.

Did you know that Apple introducing its stringent ask the apps not to track policy resulted in the Meta-owned firm losing a mega $10 billion as far as ad revenue was concerned in 2021?

There are some news reports stating how Meta’s board members even thought about putting an end to third-party-related data in 2018. But at that time, Mark Zuckerberg didn’t feel the need to pull through with the move.


Read next: Apple Ramps Up Its iPhone Production By Asking Suppliers To Make 90 Million iPhone 14 Devices

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