Apple launched an update for iPhones in April that allowed customers to choose whether to allow advertising to utilise a device ID. Over six months, it’s clear that most iPhone users opted out, and the feature, known as App Tracking Transparency, is already posing problems for firms like Snap, Facebook, and Peloton.
According to a Forbes report published earlier today, Apple buys adverts for third-party subscription-based apps to increase its commission income. Apple has responded, claiming that the allegations are inaccurate and that developers are well aware of the ads purchased on their behalf by the Cupertino company.
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According to a Forbes story, key app developers claim Apple has been quietly buying adverts for their apps. While this may appear to be a good thing at first glance, the developers claim the Cupertino firm’s motivation is greed, and that the advertising is costing them millions of dollars.
Apple appears to be seeking to divert visitors away from the developers’ websites and toward the App Store. This implies that consumers will purchase subscriptions as in-app purchases, guaranteeing that Apple receives its customary 15% to 30% cut.
Apple claims to have been running ads to promote apps for the past five years, and that they clearly labelled the ads as coming from the App Store.
Apple claims that this does not differ from a merchant airing advertisements for the things they sell, which is a common business practice. Developers’ agreements with Apple provide them with legal permission to advertise in this way.
The iPhone maker claims it speaks with developers about the ads it inserts regularly and that many developers have expressed gratitude for the help.
Apple claims that advertising is only one of the many tools available to developers, including compilers, testing and debugging tools, technical support, SDKs, libraries, APIs, and more.
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