An Apple Byte : Instagram and Facebook Ads ‘Apple Tax’

Meta has announced that it will be passing on Apple’s 30 per cent service charge (often referred to as the “Apple tax”) to advertisers who pay to boost posts on Facebook and Instagram through the iOS app.

This move is a response to Apple’s in-app purchase fees, which apply to digital transactions within apps available on the iOS platform (announced in the updated App Store guidelines back in 2022). Advertisers wanting to avoid the additional 30 per cent fee can do so by opting to boost their posts from the web, using either Facebook.com or Instagram.com via desktop and mobile browsers.

Meta says it is “required to either comply with Apple’s guidelines, or remove boosted posts from our apps” and that, “we do not want to remove the ability to boost posts, as this would hurt small businesses by making the feature less discoverable and potentially deprive them of a valuable way to promote their business.” 

Apple has reportedly responded (a statement in MacRumors), saying that it has “always required that purchases of digital goods and services within apps must use In-App Purchase,” and that because boosting a post “is a digital service — so of course In-App Purchase is required”.

Meta’s introduction of the Apple tax for advertisers on iOS apps highlights the conflict with Apple over digital ad space control and monetisation and this move, aimed at challenging Apple’s app store policies, could make advertising more costly and complicated for small businesses.

Tech Insight : New Privacy Features For Facebook and Instagram

Meta has announced the start of a roll-out of default end-to-end encryption for all personal chats and calls via Messenger and Facebook, with a view to making them more private and secure.

Extra Layer Of Security and Privacy 

Meta says that despite it being an optional feature since 2016, making it the default has “taken years to deliver” but will provide an extra layer of security. Meta highlights the benefits of default end-to-end encryption saying that “messages and calls with friends and family are protected from the moment they leave your device to the moment they reach the receiver’s device” and that “nobody, including Meta, can see what’s sent or said, unless you choose to report a message to us.“  

Default end-to-end encryption will roll-out to Facebook first and then to Instagram later, after the Messenger upgrade is completed.

Not Just Security and Privacy 

Meta is also keen to highlight the other benefits of its new default version of end-to-end encryption for users which include additional functionality, such as the ability to edit messages, higher media quality, and disappearing messages. For example:

– Users can edit messages that may have been sent too soon, or that they’d simply like to change, for up to 15 minutes after the messages have been sent.

– Disappearing messages on Messenger will now last for 24 hours after being sent, and Meta says it’s improving the interface to make it easier to tell when ‘disappearing messages’ is turned on.

– To retain privacy and reduce pressure on users to feel like they need to respond to messages immediately, Meta’s new read receipt control allows users to decide if they want others to see when they’ve read their messages.

When? 

Considering that Facebook Messenger has approximately 1 billion users worldwide, the roll-out could take months.

Why Has It Taken So Long To Introduce? 

Meta says it’s taken so long (7 years) to introduce because its engineers, cryptographers, designers, policy experts and product managers have had to rebuild Messenger features from the ground up using the Signal protocol and Meta’s own Labyrinth protocol.

Also, Meta had intended to introduce default end-to-end encryption back in 2022 but had to delay its launch over concerns that it could prevent Meta detecting child abuse on its platform.

Other Messaging Apps Already Have It 

Other messaging apps that have already introduced default end-to-end encryption include Meta-owned WhatsApp (in 2016), and Signal Foundation’s Signal messaging service which has also been upgraded to guard against future encryption-breaking attacks (as much you realistically can), e.g. quantum computer encryption cracking.

Issues 

There are several issues involved with the introduction of end-to-end encryption in messaging apps. For example:

– Governments have long wanted to force tech companies to introduce ‘back doors’ to their apps using the argument that they need to monitor content for criminal activity and dangerous behaviour, including terrorism, child sexual abuse and grooming, hate speech, criminal gang communications, and more. Unfortunately, creating a ‘back door’ destroys privacy, leaves users open to other risks (e.g. hackers) and reduces trust between users and the app owners.

– Attempted legal pressure has been applied to apps like WhatsApp and Facebook Messenger, such as the UK’s Online Safety Act. The UK government wanted to have the ability to securely scan encrypted messages sent on Signal and WhatsApp as part of the law but has admitted that this can’t happen because the technology to do so doesn’t exist (yet).

There are many compelling arguments for having (default) end-to-end encryption in messaging apps, such as:

– Consumer protection, i.e. it safeguards financial information during online banking and shopping, preventing unauthorised access and misuse.

– Business security, e.g. when used in WhatsApp and VPNs, encryption protects sensitive corporate data, ensuring data privacy and reducing cybercrime risks.

– Safe Communication in conflict zones (as highlighted by Ukraine). For example, encryption can facilitate secure, reliable communication in war-torn areas, aiding in broadcasting appeals, organising relief, combating disinformation, and protecting individuals from surveillance and tracking by hostile forces.

– Ensuring the safety of journalists and activists, particularly in environments with censorship or oppressive regimes, by keeping information channels secure and private.

– However, for most people using Facebook’s Messenger app, encryption is simply more of a general reassurance.

What Does This Mean For Your Business?

For Meta, the roll-out of default end-to-end encryption for Facebook and Instagram has been a bit of a slog and a long time coming. However, its introduction to bring FB Messenger in line with Meta’s popular WhatsApp essentially enhances user privacy and security and helps Facebook to claw its way back a little towards positioning itself as a company that’s a strong(er) advocate for digital safety.

For UK businesses, this move offers enhanced protection for sensitive data and communication, aligning with growing demands for cyber security and providing some peace of mind. However, the move presents further challenges and frustration for law enforcement and the UK government, potentially complicating efforts to monitor criminal activities and enforce regulations like the Online Safety Act. Overall, the initiative could be said to underscore a broader trend towards prioritising user privacy and security in the digital landscape, as well as being another way for tech giants like Meta to compete with other apps like Signal. It’s also a way for Meta to demonstrate that it won’t be forced into bowing to government pressure that could destroy the integrity and competitiveness of its products and negatively affect user trust in its brand (which has taken a battering in recent years).