The big picture: The relationship between Apple and Meta has turned particularly sour over the last couple of years, chiefly due to anti-tracking policies on Apple devices. According to a new report, however, the two companies once tried to find a compromise. Nonetheless, differences between their revenue streams continue to create problems between the two.

The Wall Street Journal reports that during the years before Apple’s tracking restrictions hurt Meta’s business, the companies floated ideas for Meta – then called Facebook – to share some of its revenue with Apple. Apple’s App Store would have been the primary channel for the agreement.

Even before Apple started letting iPhone users opt out of tracking from advertisers – angering Facebook – tension existed between the two companies. Some Apple executives were annoyed that Meta’s apps like Facebook and Instagram were among the most popular on the App Store but generated no revenue for Apple.

Between 2016 and 2018, Facebook and Apple discussed multiple ways in which Apple could make money from the social media platform. One was a subscription-based ad-free version of Facebook. Facebook would have let subscription payments go through the App Store’s payment processor, giving Apple a 30 percent cut of subscription revenue from users on their platform.

android

Another idea involved boosted posts, or Facebook posts that receive increased visibility when users or businesses pay for them. Facebook could have offered sponsorships as in-app purchases on the Facebook app, giving Apple a sales cut. Ultimately the proposals didn’t pan out, as the feud between the two companies intensified.

When Apple announced the ad-tracking opt-out feature in iOS 14.5 in late 2020, Facebook responded with attack ads. After the update’s launch in April 2021, most iPhone users asked not to be tracked, which slammed Meta’s ad revenue.

Sources told the WSJ the social media company considered shutting down in-app tracking before the update in order to decrease its reliance on iOS and Android. Meta decided against it for fear of revenue loss, which happened anyway.

Opting out of in-app tracking doesn’t fully protect iPhone users from Meta’s ad tracking. This week, a researcher discovered that Facebook’s and Instagram’s in-app browsers insert tracking code into every site they visit. Meta claims this feature exists only to save payment information to make purchases through those apps easier.

Disagreements between Meta and Apple might not dissipate anytime soon due to their fundamentally different business models. Facebook and Instagram primarily make money through ads, while Apple’s main revenue streams come from selling hardware and software. Locking out ad-tracking makes Apple’s products more appealing but directly conflicts with Meta’s products.

TECH NEWS RELATED

Apple faces labor board complaint over anti-union tactics

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content. Apple has received a complaint from the US National Labor Relations Board over accusations of union-busting at a New York ...

View more: Apple faces labor board complaint over anti-union tactics

Apple TV+ season 2 trailer for The Problem with Jon Stewart yuks it up over tough topics

Season 2 of “The Problem with Jon Stewart” gets underway October 7. Photo: Apple TV+ Apple TV+ unveiled the season 2 trailer Tuesday for the Emmy-nominated series The Problem With Jon Stewart. The show premieres Friday, October 7 “Welcome back, it is season 2 of the The Problem — this ...

View more: Apple TV+ season 2 trailer for The Problem with Jon Stewart yuks it up over tough topics

The folding iPhone could look like this

And we're 100 per cent there for it

View more: The folding iPhone could look like this

Apple Releases New MagSafe Charger Firmware

Apple today released updated firmware for the MagSafe Charger that is designed to work with the iPhone 12 and later and the AirPods Pro 2. The new firmware is version 10M1821, up from the prior 10M229 firmware. Note that in the Settings app, you’ll see a different version number than ...

View more: Apple Releases New MagSafe Charger Firmware

In 2021, Apple abandoned this awesome Apple TV remote design

For a company as revered for design as Apple is, the company’s Apple TV remote has always been a curiosity. Perhaps the original design was a relic of Jony Ive’s tenure where function would sometimes take a backseat to form. Still, it’s hardly a controversial take to state that ...

View more: In 2021, Apple abandoned this awesome Apple TV remote design

Review: Incase's Lanyard Pairs Well With AirPods Pro 2, But is Comparatively Expensive

Apple’s second-generation AirPods Pro Charging Case is equipped with a set of little metal holes at the right side, with the holes designed to accommodate a lanyard. Apple does not provide a lanyard with the ‌AirPods Pro‌, and is in fact selling just one on its website and in retail ...

View more: Review: Incase's Lanyard Pairs Well With AirPods Pro 2, But is Comparatively Expensive

Folding Phone Shipments to Explode by 2026 Driven by Samsung Galaxy Fold Devices

According to the IDC, Samsung Galaxy Fold smartphones will drive massive growth in the folding phone market in the coming years.

View more: Folding Phone Shipments to Explode by 2026 Driven by Samsung Galaxy Fold Devices

Change the Default iPhone Camera App with This Shortcut Automation

Apple Apple doesn’t let you change the default iPhone Camera app, at least officially. But a clever little hack to switch to your preferred camera app in Shortcuts means you can use your preferred camera app, even when you tap the lock screen shortcut. How to Set Up the ...

View more: Change the Default iPhone Camera App with This Shortcut Automation

USB-C on iPhone required by 2024 in Europe — can Apple get out of it?

Elon Musk throws in towel, agrees to buy Twitter at original price

How to set up Personalized Spatial Audio in iOS 16

MacOS Ventura Beta 10 Available for Testing

iOS 16.1 Beta 4 & iPadOS 16.1 Beta 5 Released for Testing

Matter smart home standard finalized as Apple readies iOS 16.1 support

Relax, the EU’s scary USB-C rule won’t rob you of fast-charging benefits

Fortnite 22.10 Patch Notes: Cobra DMR, Holo-Chests, And The Return Of The Grapple Glove

Apple seeds fourth iOS 16.1 and tvOS 16.1, fifth iPadOS 16.1 betas to developers

Apple seeds tenth developer beta of macOS Ventura

Apple Seeds Tenth Beta of macOS 13 Ventura to Developers

Apple Seeds Fourth Beta of tvOS 16.1 to Developers

OTHER TECH NEWS

Top Car News Car News