Long before the launch of ‘Threads‘, Meta, the parent company of Facebook reportedly was already delving into the realm of in-platform app stores to compete with App Store and Play Store. The latest report from The Verge reveals that Meta is experimenting with the idea of an exclusive app store within Facebook itself, granting developers the ability to showcase their apps and enabling users to download them directly without leaving the app.
According to The Verge, Meta is planning to introduce a groundbreaking feature for European users, allowing them to download apps directly through Facebook ads. This move positions the tech giant to eventually rival the app stores of Google and Apple. Initially, the innovative ads will undergo a trial run with select Android app developers, with plans for implementation as early as later this year.
This strategic maneuver by Meta is a direct response to the upcoming EU Digital Markets Act (DMA), which will impose regulations on Google and Apple, compelling them to allow alternative methods for app downloads on their mobile platforms.
Should Meta succeed in challenging the app distribution status quo, it would not only gain greater control over the app market but potentially disrupt in-app payments as well. This could eliminate the current restrictions and taxes imposed by the dominant tech giants on Android and iOS interactions.
Notably, Meta has been a vocal critic of Apple’s approach, particularly regarding its fee structure for in-app purchases. Meta CEO Mark Zuckerberg previously condemned Apple’s “monopolistic” practices, asserting that they hinder competition within the industry. The clash arose when Meta sought to enable creators to monetize virtual events on Facebook during the COVID-19 lockdowns, while Apple refused to waive its 30% share of in-app purchases, thereby limiting the creators’ revenue potential. Although Apple temporarily suspended the fees due to the circumstances, it soon resumed collecting its cut.
Numerous other industry players, including Twitter, have also voiced objections to the similar approaches adopted by Apple and Google. Meta and Twitter, for instance, have attempted to circumvent revenue cuts by offering variable pricing for in-app and web purchases, where these taxes do not apply.
The prospect of assuming control over this vital aspect of the industry and generating direct income for itself and its partners presents a significant opportunity for Meta. It remains to be seen how the EU will apply its DMA approach and whether it will indeed open the doors to alternative app stores and extend to other transactions.
While Meta has not released any official information regarding the project, the company is actively exploring its options. Should the initiative prove successful in one region, there’s no doubt that Meta will rally its army of Washington lobbyists to advocate for its expansion into other markets.
It’s still early days, and Meta has yet to unveil concrete details about the project. Nonetheless, the exploration of these possibilities could be a game-changer for app developers and individuals seeking to generate direct income from their presence on Facebook and Instagram.
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