Apple and Facebook considered selling subscriptions to an ad-free version of the social media site on the App Store
One possibility discussed was a special ad-free version of Facebook that would be offered to iOS users via the App Store. Since this would be a subscription service, Facebook would collect revenue and Apple would get its usual 15%-30% cut. But when you are dealing with two money-focused firms like Apple and Facebook, negotiations over who gets to collect every extra penny becomes intense.
App Tracking Transparency allows iOS and iPadOS users to avoid getting tracked by apps and websites
The Journal report claims that both firms fought over whether Apple should get a cut from so-called boosted posts. By paying Facebook (now Meta), the author of a post can have it viewed by more Facebook users. Facebook contended that Apple would not be entitled to the revenue from boosted posts. Since many small businesses use the feature to reach more potential customers, and Apple does not take ad money from developers, Facebook argued that this revenue was hands-off.
Apple and Meta were moving in two different directions concerning user privacy
Investors have noticed. The market capitalization of Meta (Facebook’s new corporate name) has declined by $600 billion over the last year. And last month the company reported its first year-over-year decline in quarterly revenue…ever.
And there we have the tale of two companies that for a brief moment in time tried to find common ground so that they could work together. But Apple’s decision to promote privacy and Facebook’s decision to continue mining personal data to help push targeted ads had both moving in opposite directions. It’s no surprise that deal couldn’t be worked out.