Facebook v Apple: The ad tracking feud continues

Ever since the announcement of Apple’s App Tracking Transparency feature, Facebook has been on a defensive mode. The rift between the two tech giants continues to increase as the release date comes near. It will enable device users to say no to having their data collected by any app.

Facebook has put its own spin as to why it needs user data, claiming that it generates most of the advertisements and could adversely affect small businesses. While the real issue is that Facebook’s entire business model depends on data sharing hence once the feature has been implemented the company will incur huge losses.

What’s it about?

The tech feud of the decade focuses on a unique device identifier on every iPhone and iPad, called the IDFA (identifier for advertisers). Companies that sell mobile ads, including Facebook, use this IDFA to both target ads and estimate their effectiveness.

The IDFA can also be used in different ways such as Facebook’s tracking pixels or tracking cookies, which follow users around the web, to learn even more about you. Once the App Tracking Transparency feature is released, it will be turned on by default. The feature will force app developers to explicitly ask for permission from users to use this IDFA.

Recent surveys have revealed that almost 80% of the users will say no to data sharing which endangers Facebook.

Why is Apple taking this step?

Apple has never expressed interest in their user’s data because it makes money from selling devices and in-app purchases, rather than from advertising. Plus it has always marketed itself as a privacy-first company.

The late Steve Jobs has said on occasion, “Privacy means people know what they’re signing up for, in plain English and repeatedly… ask them, ask them every time,”

While Apple has not directly attacked Facebook’s feeble attempts to delay the feature, Tim Cook did make a veiled statement at the social media platform. He said, “If a business is built on misleading users, on data exploitation, on choices that are no choices at all, it does not deserve our praise. It deserves reform.”

Apple has always been privacy first and it seems it is moving to the next gear.

Facebook’s Reaction

Facebook has been scrambling ever since the announcement of the feature. It has even warned that the app update could cut the money earned through its ad network by half, hitting small businesses the hardest. It has been argued that data sharing improves the overall experience and helps them personalize its platform to each user’s needs.

It further claims that Apple’s actions are hypocritical because it will force businesses to turn to subscriptions and other in-app payments for revenue, from which Apple takes a cut.

Facebook has gone into full-blown panic mode and started on a PR offensive. It took out adverts in national newspapers in December, featuring small businesses talking about how they only survived the pandemic thanks to targeted ads.

What should we expect?

It seems highly unlikely that Facebook will give up and just accept the new feature. The company is in danger of incurring huge losses hence it may harm users or small businesses to get what it wants. As of now, Apple is paying no heed to the tantrum thrown by Facebook and plans on going ahead with the feature.