'Revenue-Sharing' Ideas Were Allegedly Discussed by Apple and Facebook in the Past

Neha Roy
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Since the iPhone manufacturer unveiled its App Tracking Transparency feature, which allows users to choose not to be tracked across apps on various platforms, Facebook and Apple have been at odds. But in the past, it was said that Apple and Facebook had talked about "revenue-sharing arrangements" that may have provided Apple a "piece of Facebook's revenue."



One concept that Apple proposed, according to The Wall Street Journal, which asserts that the majority of the discussions took place between 2016 and 2018, was Facebook developing a subscription-based version of its app without advertisements. According to the story, Apple would have received its typical 15% to 30% commission on Facebook's in-app subscriptions made through the App Store, but Facebook finally rejected the plan.


Apple purportedly also claimed that the boosted post feature of the Facebook app, which enables Facebook sites to advertise a post to a bigger audience for a cost, should have been regarded as in-app sales and hence subject to Apple's 30% commission.


An Apple representative noted in a statement that the company regularly consults with developers of all sizes to discuss commercial issues:

The rules for app developers like Facebook are "applied equally to all developers because we think that fair enforcement results in the best user experience," an Apple spokesman said. "We meet and collaborate with developers of all sizes every day to make suggestions, address concerns, and help them continue to grow their businesses."


There was "no relationship between any discussions of partnerships and the ad-tracking measures that were later implemented," a second Apple spokesman reportedly told The Wall Street Journal. With the April 2021 software upgrades for iOS 14.5, iPadOS 14.5, and tvOS 14.5 came the implementation of app tracking transparency.


According to an estimate by data management firm Lotame, app tracking transparency has cost Facebook, Twitter, Snap, and YouTube $17.8 billion in lost revenue so far in 2022, according to The Wall Street Journal.


The Wall Street Journal's entire story includes further information regarding the differences between Apple's and Facebook's approaches to user privacy.


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