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Snap Inc. (NYSE: SNAP) risks the wrath of Apple Inc. (NASDAQ: AAPL) on exploring ways to get around the iPhone maker’s new privacy rules that are expected to roll out in the coming weeks, the Financial Times reported on Friday.
What happened: Snap, the parent of the Snapchat messaging app, explored ways to collect data from companies that analyze whether people have responded to ad campaigns, according to the FT report, which cited internal company documents.
Snap reportedly hoped to cross the data with its own user database and then track users, using a technique known as “probabilistic matching.”
While Snap has admitted to running a probabilistic matching program for several months to test the impact of Apple’s new policies, the company has indicated that it plans to halt the program after Apple introduced the changes, according to The report.
See also: Snapchat Parent to Launch AR Glasses and Drone, Promoting Hardware Push: Report
Why is this important: Apple’s upcoming privacy changes will give users more privacy in the face of mobile advertising, but they’re unpopular with app developers, many of whom are small businesses. According to Apple, the new feature will require apps to get permission from users before tracking them.
Snap isn’t the only company exploring Apple’s new privacy guidelines to continue tracking users without their permission. It was reported last month that Apple had warned Chinese app developers and tech companies not to circumvent the new privacy rules.
Five of China’s biggest tech companies, including Baidu Inc. (NASDAQ: BIDU), Tencent Holdings Ltd. (OTC: TCEHY) and ByteDance are reportedly testing or implementing CAID, a system developed by the state-backed China Advertising Association to identify and track users in the future. Other proposed workarounds would use a process known as fingerprinting.
Facebook Inc. (NASDAQ: FB), second recipient of advertising revenue after Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL), had strongly criticized changes to Apple’s privacy rules for months, saying the changes could impact targeted advertising on its platform. However, Facebook CEO Mark Zuckerberg said last month that the rule changes could benefit his business if more companies decide to sell products directly through Facebook and Instagram.
Price action: Snap shares closed up 4.2% Thursday at $ 54.49, while Apple shares closed 0.7% higher at $ 123.00.
Read more: Microsoft tightens tentacles around Pentagon with $ 22 billion AR headset deal, analyst says
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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