Facebook and Apple fight over next app tracking transparency feature in iOS 14

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Update 1 (12/18/2020 @ 00:25 AND): Added recent response from Apple. Scroll down for more information. The article as published on December 17, 2020 is kept below.

In June 2020, Apple announced that the iOS 14 update to its mobile operating system would introduce a mechanism for users to turn off in-app ad tracking by refusing to share the IDFA ID with developers from applications. This feature, called App Tracking Transparency, has aroused the ire of advertising giants for its impact on their business. Apple has delayed applying the feature until 2021 to allow developers to adapt their applications. But as 2021 approaches, advertising giants like Facebook have responded to Apple again for this feature.

The application tracking transparency framework basically asks the user for permission to access app-related data to track the user or device. And in a separate policy update, Apple has required apps in Apple’s App Store to give users more details about personal data. The listing of each app will highlight key information about the data collected and a summary of its privacy policy.

This policy update, coupled with the upcoming application tracking transparency feature, has prompted Facebook to take it out on Apple with a series of full-page ads in major newspapers like the New York Times, The Wall Street Journal and the Washington Post (via BloOmberg).

Facebook argues that these changes in iOS will spread to small businesses, limiting their ability to serve personalized ads and effectively reach their customers. According to Facebook, small business advertisers could see a reduction of more than 60% in their sales for every dollar spent on ads because those ads would no longer target the right customers.

Facebook also posted a blog post on the matter, further claiming that the changes will force businesses to turn to in-app subscriptions and other payments for revenue, some of which will then go to Apple (though smaller developers have had their “Apple tax” reduced to 15%). In addition, Apple’s personalized advertising platform would be exempt from the new iOS 14 policy changes. Facebook has no choice but to display the necessary prompts to opt out, even if it is not. Strongly agree with the changes given the impact it would have on the businesses the company wants to support.

Facebook continues to lash out at Apple for claiming it behaves anti-competitively by using its control of the iron grip of the App Store to profit its own bottom line at the expense of app developers and small businesses . And for this reason, Facebook also provides relevant information in the Apple v Epic Games litigation regarding the negative impact of Apple’s policies on Facebook and those who use the services of the social media giant.

Apple responded to criticism from Facebook, saying in a statement (via The edge) that’s all “defend our users“.

We think it’s just about standing up for our users. Users should know when their data is being collected and shared on other apps and websites – and they should be given the choice of whether or not to allow it. The transparency of app tracking in iOS 14 doesn’t require Facebook to change its approach to tracking users and creating targeted ads, they just need to give users a choice.

Apple’s statement comes as Facebook launches a second ad (via The edge) entitled “Apple vs Free Internet“.

This new ad claims Apple’s privacy changes on iOS 14 “will change the internet as we know it“, And force websites and blogs”to start charging you subscription fees“Or add in-app purchases due to lack of personalized ads.

To add a little more context to Facebook’s PR campaign, here’s what the new App Store privacy section looks like for the official Facebook app:

It remains to be seen how this war of words ends. Needless to say, there is a lot of money at stake on either side of the fence. Both companies would like you to believe their cause is more legitimate and fairer. But the truth will likely lie somewhere in the middle, closer to corporate profit ideals.

Update: Apple’s response

Apple CEO Mr. Tim Cook responded to the Facebook attacks with a simple response:

Mr. Cook’s response essentially implies that Apple is giving users a choice and not forcing them to opt out of all tracking. By extension, Facebook’s attacks indicate that users will largely choose to opt out of tracking when given that choice. It therefore becomes essential for the Facebook business that users do not have this choice.



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