Here’s a captivating introduction for the article: “Tech titans, beware! The battle for digital supremacy has just taken a dramatic turn. Mark Zuckerberg, the CEO of Meta, is firing back at Apple’s restrictive App Store rules, claiming they’re stifling innovation and limiting Meta’s profits. In a scathing critique, Zuckerberg accused Apple of imposing “random rules” that favor certain apps over others, stifling competition and creativity. This explosive feud has sparked a heated debate about the role of tech giants in shaping the digital landscape. Will Apple’s strict regulations stifle innovation or protect users from malicious apps? Dive into the latest PYMNTS.com article to discover the full extent of the drama and what it means for the future of the tech industry.”
Zuckerberg’s Criticism of Apple’s “Random Rules”
Meta’s CEO criticized Apple for a lack of innovation and “random rules,” on a recent podcast. And those rules, Mark Zuckerberg argued, hinder Meta’s profits, CNBC reported Friday (Jan. 10), citing comments made on an episode of the “Joe Rogan Experience” podcast.
“On the one hand, [the iPhone has] been great, because now pretty much everyone in the world has a phone, and that’s kind of what enables pretty amazing things,” Zuckerberg told Rogan. “But on the other hand … they have used that platform to put in place a lot of rules that I think feel arbitrary and [I] feel like they haven’t really invented anything great in a while. It’s like Steve Jobs invented the iPhone, and now they’re just kind of sitting on it 20 years later.”
He argued that iPhone sales are flagging because consumers were waiting to upgrade their devices, waiting for more improved models. “So how are they making more money as a company? Well, they do it by basically, like, squeezing people, and, like you’re saying, having this 30% tax on developers by getting you to buy more peripherals and things that plug into it,” Zuckerberg said. “You know, they build stuff like AirPods, which are cool, but they’ve just thoroughly hamstrung the ability for anyone else to build something that can connect to the iPhone in the same way.”
Meta last year offered advertisers a way to avoid the 30% service charge levied by Apple. The offer lets businesses that use boosted posts on Facebook and Instagram can go to those platform’s websites on mobile or desktop devices to boost their content and not pay the service charge.
Apple’s Defenses and Meta’s Concerns
Apple defends itself from criticism from other companies by saying it wants to protect user privacy and security. Zuckerberg added that it could solve that problem by improving its protocol, such as building better security and using encryption. “It’s insecure because you didn’t build any security into it. And then now you’re using that as a justification for why only your product can connect in an easy way,” Zuckerberg said.
Zuckerberg contended that if Apple stopped applying its “random rules,” Meta’s profit would double. Apple and Meta reportedly considered working together last year, with the Facebook owner offering to integrate its artificial intelligence (AI) chatbot into the iPhone. However, Apple apparently rejected Meta’s proposal following two brief discussions.
The Impact on Meta’s Profits
The implications for Meta’s business and revenue growth are significant. If Apple stopped applying its “random rules,” Meta’s profit would double. This is because Meta would be able to offer its services and products without the 30% service charge levied by Apple. Additionally, Meta would be able to innovate and develop new products and services without being restricted by Apple’s rules.
Furthermore, Meta would be able to expand its user base and reach a wider audience without being limited by Apple’s restrictions. This would lead to increased revenue and profitability for Meta, as well as increased competition in the market.
B2B Payments and Innovation
Elite, a financial management service for law practices, has acquired B2B payments platform Tranch. “At Elite, our focus is on providing law firms the SaaS solutions they need to lead their business into the future with confidence, and help them gain operational efficiencies, optimize resource allocation and improve expense management,” Elite CEO Mark Dorman said in Monday (Jan. 6) a news release.
By embedding Tranch’s products within their portfolio of SaaS solutions, Elite will offer their customers greater choice and flexibility in managing their work-to-cash process, which will help law firms reduce payment delays, increase cashflows and, ultimately, boost profitability.
Tranch’s Electronic Payment Offerings
Tranch’s electronic payment offerings include instant payment services via the FedNow service and Real-Time Payment Network and “Pay by Card,” including virtual card terminals for billing teams. The company also offers “Pay Later,” letting law firms spread their payments over time.
The platform’s invoice-to-payments experience, the release adds, “allows law firms to reduce their cash collection cycle and handle more work without proportional staff increases to its finance teams, enhancing profitability.”
Financial Inclusion and Embedded Lending
TransUnion says it plans to acquire British credit prequalification/distribution platform Monevo. The credit reporting agency announced the deal Wednesday (Jan. 8), noting that it already owned 30% of Monevo’s equity after purchasing a minority stake in 2021.
“We are committed to making trust possible in global commerce by ensuring consumers and organizations can transact with confidence,” Todd Skinner, TransUnion president, international, said in a news release. “Prequalification is an integral part of the consumer lending process. It drives financial inclusion and responsible lending by helping consumers find more suitable products in less time.”
The State of Embedded Lending
Embedded lending — the integration of credit offerings into platforms where borrowers can apply for credit directly during a transaction — is gaining traction with both consumers and microbusinesses (MSBs) around the world. According to the PYMNTS Intelligence report “The Embedded Lending Opportunity: Global State of Play,” consumers and MSBs are embracing embedded lending products, but obstacles remain, especially in the application process.
The report found that 15% of consumers around the world had used embedded lending in the 90 days before being surveyed, led by the U.S. at 17%. Younger people, members of Gen Z especially, were the most likely to use embedded lending, at 19%, showcasing its appeal among consumers new to credit. But despite its popularity, users of embedded lending still faced friction, especially during the application process, with 37% of consumers and 58% of MSBs pointing to problems such as unclear terms and complex eligibility requirements.
Conclusion
As Facebook’s parent company, Meta, struggles to boost its profits, Mark Zuckerberg has lashed out at Apple’s “random rules” for handling user data, claiming they are significantly hampering the company’s ability to monetize its massive user base. In a recent interview, Zuckerberg accused Apple of having a “double standard” by allowing its own apps to collect vast amounts of user data, while simultaneously restricting Meta’s ability to do the same. The tech giant’s CEO argued that this “arbitrary” approach is stifling innovation and limiting the company’s potential for growth.
The implications of this debate are far-reaching and significant, going beyond the confines of the tech industry. As the lines between data privacy and commercialization continue to blur, the public’s trust in social media platforms is increasingly being tested. The “random rules” imposed by Apple are a prime example of the regulatory frameworks that are emerging to address these concerns. As the tech giants continue to grapple with the challenges of balancing user privacy with their business interests, it is essential that policymakers and regulators develop a more comprehensive and transparent approach to data governance. Only by doing so can we ensure that the digital landscape remains a space for innovation, creativity, and global connection.