Data Privacy War: Apple vs Facebook

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Apple’s iPhone update, iOS 14.5, brings a lot of new features. One of these features called App Tracking Transparency, pops up the privacy notification. It prompts users to give apps the permission to track their activity across other apps.

This new feature has been in controversies lately and has caused a huge rift between Apple and Facebook. Let’s discuss why Facebook doesn’t seem to like the update.


What’s it about?

Every iPhone or iPad has IDFA (Identifiers for Advertisers) that are used by companies, like Facebook, which sell mobile ads. They target ads based on your preferences and data, and can even be paired with Facebook’s tracking pixels / cookies to learn more about you. However, Apple’s new update regarding privacy pop-up notification, will force app developers to ask permission from users to use IDFA.

Why was Facebook against it?

This iPhone update could directly affect the annual earnings of approximately $86 billion that Facebook earns using targeted advertisements. It argued that this will affect small businesses which depend on advertisements for their earnings. Facebook even went PR offensive and took out advertisements in New York Times and Wall Street Journal. These advertisements featured small businesses talking about how they were able to survive the pandemic because of targeted ads and how the new App Tracking Transparency feature would harm them.

Facebook CEO Mark Zuckerberg said, “Apple may say that they are doing this to help people, but the moves clearly track their competitive interests”. Facebook also claimed that Apple will take a cut by forcing businesses to turn to subscriptions and other in-app payments for revenue.

Why is Apple bringing this feature?

Back in 2010, Apple co-founder Steve Jobs acknowledged that some people did not care about how much data they shared, but they should be aware and informed about how it was being used.

“Privacy means people know what they’re signing up for, in plain English and repeatedly… ask them, ask them every time”, he said.

Also, Apple CEO Tim Cook said, “Users should have the choice over the data that is being collected about them and how it’s used.”

Conclusion

In one of its latest blogs, Facebook appeared to accept the privacy changes in new iOS 14.5 and it promised “new advertiser experiences and measurement protocols”. Facebook also admitted that the way digital advertisers collect and use information needed to evolve.

Sources:

  1. https://m.economictimes.com/tech/technology/apple-iphone-privacy-update-seen-hurting-facebook-revenue-in-second-quarter/articleshow/82268691.cms
  2. https://www.cnet.com/news/facebook-vs-apple-heres-what-you-need-to-know-about-their-privacy-feud/
  3. https://www.bbc.com/news/technology-56831241



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