There was apparently a time when Apple and Facebook were planning on joining hands despite their building friction over the years. The two companies were supposedly planning on launching a new subscription under a new partnership.
According to a new report from Wall Street Journal, the two tech giants had plans for a revenue sharing subscription plan. Back in WWDC 2020, Apple had announced that it would require apps to ask users to opt in to cross app advertising tracking. In response to this, Facebook was openly against this decision and spent months speaking out against this plan. However, it appears that prior to this announcement, the two firms were planning on a partnership and revenue sharing agreement.
The two company were considering a new subscription service that would offer an ad free version of the popular social media platform. Out of the subscription fee, the Cupertino based giant would receive a cut of the revenue. This would include subscriptions and in app purchases, which would have been a great agreement for the iPhone maker. Apparently, the deal might have even included Apple receiving a cut for promoted posts as well, which is basically the amount paid to Facebook for boosting the page to a larger audience.
These boosted posts are a large past of Facebook’s advertising portfolio. However, Apple claimed that this transaction should be treated to the 30 percent revenue cut it receives, since its an in app purchase. On the other hand, Facebook argued that its advertising products will not be subject to the revenue cut. These talks reportedly took place sometime between 2016 and 2018, so its likely that the deal is definitely off by now.
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