Apple Inc. (NASDAQ:AAPL) will launch a new privacy feature when the company unveils the next iOS 14 version and that has generated some anger from social media giant Facebook Inc. (NASDAQ:FB).
App Tracking Transparency to stop user activity tracking
The iPhone maker’s App Tracking Transparency feature has become a flashpoint between the tech giants. The Information reported that Facebook was contemplating an antitrust lawsuit against Apple regarding the move. The latest row comes at the back of the social media company’s support for Epic Game’s antitrust lawsuit against Apple.
It is important to note that App Tracking Transparency is a feature that will help users to choose when an app should track their activity. Over the past few years, the Cupertino-based company has been pushing for privacy and in the past it made moves limiting companies’ ability to track users’ activities through its Safari browser. The new feature will keep user tracking turned off automatically and users can only be tracked if they permit it. Interestingly, app tracking is on by default but users can choose to disable it through iPADOS or iOS settings.
Facebook could lose ad revenue if Apple implements a new feature
However, Facebook is becoming concerned that keeping tracking off and asking users to turn it on if they want to be tracked will be tricky. iOS has an identification for advertisers software tracker which allows advertisers to track users’ activity across apps without pulling their personal information. Tracking is vital for Facebook because it allows the company to send users targeted ads.
It is important to note that Facebook creates most of its revenue through ads and if the company won’t be able to target ads then it means it can’t buy many ads. According to the social media giant’s resear4ch, firms advertising with Facebook will see a 50% drop in their revenue if App Tracking Transparency becomes a reality. Facebook is now considering an Antitrust Lawsuit against Apple regarding the feature claiming that the iPhone makes made the move to fill its coffers.
