Facebook Stock drops as Zuckerberg calls Apple

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The problem is brewing between

Apple

and

Facebook.

On Wednesday’s conference call after

Facebook

(ticker: FB) declared profits, CEO Mark Zuckerberg took

Apple

(AAPL) to the task, claiming that Apple’s upcoming changes to its ad tracking technology are in its best interests and not to help people, as Apple has claimed.

“Apple can say they are doing this to help people, but the movements are clearly following their competitive interests,” CEO Mark Zuckerberg said during the earnings call on Wednesday. “And I think this dynamic is important for people to understand, because we and others are going to be facing this for the foreseeable future.”

The upcoming change Zuckerberg is referring to is an obscure part of Apple’s mobile iOS software that helps companies that sell ads track what people are doing on their phones. Tracking technology is used by Facebook – and many other ad-based businesses – to more effectively target ads and thereby increase their value.

In December, Apple CEO Tim Cook said Apple believes people should have a choice between what data is collected about them and how it is used. He took stock in a Tweeter that Facebook can still follow people, but it will soon have to ask permission to do so.

It’s unclear when Apple plans to launch the update, but Facebook has long argued that if Apple goes ahead with its plans, it will hurt small and medium businesses the most. These types of businesses need precise targeting technology in order to present advertisements to their customers, rather than making a state or zip code specific ad purchase. Big businesses can afford to make big ad buys, Facebook executives said.

But Facebook appears to want to go way beyond the heavily worded earnings calls.

According to an article published Thursday in The Information, lawyers hired by Facebook are preparing an antitrust action against the iPhone maker. The lawsuit would claim that Apple’s rules for its App Store are unfair. To list an app in the Apple store, developers like Facebook must adhere to a number of rules, like using its payment system.

Zuckerberg also raised a specific issue during the call about results with Apple’s App Store practices. “I want to stress that we increasingly see Apple as one of our biggest competitors,” Zuckerberg said. “IMessage is a key weapon in their ecosystem. It’s preinstalled on every iPhone and they preceded it with APIs and private permissions, which is why iMessage is the most widely used messaging service in the United States. An API, or application programming interface, allows developers to integrate their applications with popular software platforms.

It was not immediately clear whether Facebook planned to continue the litigation against Apple.

Epic filed a similar lawsuit against Apple last year, amid an advertising blitz, and argued after the company tried to implement its own payments system within its popular Fortnite video game. Epic has asked the courts to force Apple to change its business model for its App Store.

Despite the problems Facebook is having with Apple, Baird’s technology analyst Colin Sebastian wrote in a note to customers on Thursday that Facebook is one of the most powerful and innovative large-scale internet platforms. He wrote that the rise remains for its core business, and called the quarter “strong” while noting that growth during the year may slow.

Facebook shares closed Thursday down 2.6% to $ 265.