Facebook and Apple battle over the data of users, continues to increase in intensity. Apple’s new tracking-optional update for its mobile operating system iOS will be introduced later this year (2021). The new privacy protecting feature will make it possible for users to essentially opt out of being monitored around the internet through trackers that have been put in place in their applications.
As a result of this development Facebook which makes huge chunk of its income from the data it collects from users via said trackers, is reportedly not happy about the new features by Apple. It is reported that Facebook is considering suing Apple. Apple in response, is refusing to give in.
In January of this year; 2021, the world witnessed the most recent back and forth in the form of words which were further proof of the tension between both companies, a tension that has been present for months.
On the 27th of January the Chief Executive Officer (CEO) of Facebook; Mark Zuckerberg made it known via a Quarterly Earnings Call that, “we increasingly see Apple as one of our biggest competitors.”
He also accused Apple of making use of its “dominant platform position” to push its own applications while at the same time, interfering with Facebook’s own applications.
Facebook’s Chief Executive Officer (CEO) made it known that the American multinational technology company; Apple might structure its push of its own applications as a kind of privacy service to its users, but distract from it really being Apple’s own best anti-competitive interests. It was also reported that Facebook is putting together an antitrust suit against App as a result of the rules in its App Store. The antitrust suit if filed, will join a list of others.
Apple is so far, standing its ground and refusing to give in. Not long after the earnings call by Facebook, the Chief Executive Officer (CEO) of Apple; Tim Cook spoke at the Computers, Privacy and Data Protection conference. Although Tim Cook never mentioned Facebook by name, it is believed by observers that the target of his statements regarding advertising and data, were obvious.
In the words of Apple’s Chief Executive Officer (CEO), “Technology does not need vast troves of personal data, stitched together across dozens of websites and apps, in order to succeed.”
He added that, “Advertising existed and thrived for decades without it. And we’re here today because the path of least resistance is rarely the path of wisdom. If a business is built on misleading users, on data exploitation, on choices that are no choices at all, then it does not deserve our praise. It deserves reform.”
The reform being referred to by the Apple Chief Executive Officer (CEO) would come in the form of a mobile operating system. This mobile operating system, will make it impossible for companies to accumulate the enormous troves of personal data Tim Cook alluded to.
The moves by Apple, will bring its very own mobile operating system; iOS, really close to its goal.
Apple has over the years been able to integrate a number of privacy protections into its services and products.
On iOS 14 for example, applications have to tell users the information that they wish to collect and also request for permission to do so. One of such features on iOS 14 includes the privacy nutrition labels. Said labels essentially let users know if their data is being collected, why it is being collected, and how it is being collected. According to the Washington Post the privacy labels, operate on the honour system.
Another development that could potentially be a game changer for developers and users is the App Tracking Transparency (ATT) feature. The App Tracking Transparency (ATT) feature will require all applications to first get permission from users before they will be able to track them across websites and other applications.
If users refuse to grant permission which will most likely be a majority of users as people in general do not like being tracked, the companies that make use of targeted advertising, will end up losing a major source of data and subsequently, revenue. In a nutshell, Apple’s decision may have a significantly negative impact on the mobile application ecosystem that its product; the iPhone played a part in building.
Social media company; Facebook has over the years not been perceived as being on the side of user privacy. It is also one of the biggest data collectors so far. Facebook trackers are hidden in loads and loads of websites and of course mobile applications.
Facebook then uses the user data it compiles, for advertising on its Audience Network mobile app ad service and on its platforms. With this in mind, it is not hard to guess that the social media behemoth was worried about the millions of iPhones that would potentially be able to cut off a large portion of its user data sources. While Facebook is however not the only company who is not on board with Apple’s new rules, it is one of biggest ones.
Facebook has described Apple’s decision as an attack on the numerous SMEs (Small and Medium-sized Enterprises) who make use of Facebook’s ads whenever they need to reach potential customers.
The social media giant during a PR campaign in December of 2020 stated that non-personalized ads are able to generate 60 percent less sales as opposed to the personalized ads even as businesses are still struggling to stay in the green during the still ongoing Coronavirus pandemic.
Since the PR campaign by Facebook Apple has, gone ahead with the rollout moves for its App Tracking Transparency (ATT) feature. Facebook on the 1st of February 2021 made it known via an announcement that the tracking permission prompt which is required by Apple, will also come with a prompt from Facebook that “will provide more information” with regards to why Facebook uses targeted ads and how it will use said targeted ads.
The prompt by Facebook will also make it known that the money it makes from said ads ensures that the applications remain free, while also making it possible for the businesses which make use of said targeted ads to secure a better return on their investment when compared to what is the case with non-targeted ads. Due to the fact that this stance is by Facebook some observers believe that it might be a biased one.
Apple and Facebook and Apple are two of the largest and most accomplished companies in today’s world. This makes it even more interesting when you see how different each company views matters regarding user privacy.
Apple on the one hand has made user privacy and its protection a significant part of its business plan and strategy. It has even gone as far as getting in public disputes with the United States Department of Justice regarding the continued protection of user privacy.
This support of user privacy from Apple is seen by some observers as a direct result of the fact the technology giant mainly deals in services and products, and the fact that it has been able to become the more secure and private alternative to Alphabet’s Google who deals a lot more with Data.
Facebook on the other hand, focuses a lot more on the utilization of user data. As a result its fallouts with the United States Department of Justice have been as a result of violations of user privacy.
A number of companies including Facebook have in recent times, brought attention to the reality that Apple has been able to achieve an incredible amount of control over all aspects of its devices.
Apple’s mobile devices for example are only made by Apple and only work with Apple’s Operating Systems.
Apple’s hardware offerings, must also use applications which are for the most part only available on the Apple App Store. Said applications must also meet the requirements set by Apple, pay Apple’s commissions, and make use of Apple’s in-application features while also competing against Apple’s own applications which do sometimes share similarities with the other apps available.
As a result of this, Apple is able to make privacy a part of its business strategy for gaining more customers, and also make it a requirement for other applications that wish to get access to the users in Apple’s ecosystem. This of course, also includes applications made and owned by powerful companies like Facebook
What this means for users is that apart from having a number of additional privacy options when the new Apple update is released later this year. While this won’t make the ads disappear completely, it means that advertisers will not be able to get as much access to your data as they would like in order to create targeted ads.
Social media giant; Facebook has made it known publicly that it will be complying with the App Tracking Transparency (ATT) requirements provided by Apple. This means that Facebook will not be removing its applications from Apple’s App Store and Apple in turn will also not be removing the applications by Facebook from its App Store.
So far, it looks like a win win situation for both companies because users in Apple’s ecosystem need Facebook’s applications like WhatsApp, Instagram and of course Facebook on their Apple devices, while Facebook needs to have their applications in front of as many users as it can. While both companies have over the years continued to engage in public back and forths, their business relationship, continues to wax strong.
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