Apple (AAPL) is ready to introduce a new privacy feature in the next version of iOS 14 that is causing a lot of anger from people like Silicon Valley’s titan Facebook.
The feature, called App Tracking Transparency, has become such a hotspot among companies that Facebook (FB) is considering filing an antitrust lawsuit against Apple, according to The Information. The social media giant is already supporting Epic Games’ own antitrust case against the iPhone maker.
What is transparency through tracking apps, and why does Facebook hate it so much? I covered you.
What is transparency about tracking applications?
Let’s start with the basics. Your iOS and iPadOS devices have an identifier for advertiser software detection or IDFA. An IDFA is Apple’s randomized identifier that allows advertisers to track your activities on apps and on the Internet without compromising your personal information.
It’s important for advertisers to track your activity, as it enables them to send you targeted ads and determine how successful their advertising campaigns are. So if you’re looking at a lot of pet related sites, IDFA can help advertisers send you ads related to pet food or toys.
However, Apple has driven privacy as part of its product range over the past few years, moving earlier to limit the ability of companies to track certain user activities via its Safari browser.
This is where transparency occurs in the tracking of applications. The feature, when made available with the next version of iOS 14, offers users a pop-up when they launch an app that wants to track their activities. The feature also remains that the track is disabled by default, and it will only be possible to track you if you point the app to it.
App tracking is currently enabled by default, though users can disable it via the iOS and iPadOS settings menus. Facebook fears that the fact that the standard is no longer tracked and people are asked to turn it on will lead to a large number of users being rejected.
Why is this a problem for Facebook?
Facebook generates the vast majority of its revenue through advertising. If companies can not target ads, they can not buy as many ads. What’s more, according to Facebook’s own research, companies that advertise with Facebook can see their revenue drop by as much as 50% when transparency of applications is monitored.
However, Facebook shot back in a big way. According to reports, the company is considering an antitrust application against Apple over the transparency of information, claiming that Apple is only making the move to fill its own suitcases.
Facebook says that if people choose not to be tracked, the effectiveness of targeted ads will decline. This will, according to Facebook app developers offering their apps for free, force them by advertising with ad sales, to start charging their apps and in-app purchases.
Apple charges a 30% fee for apps purchased through the App Store, the only way to get apps on iPhones or iPads. According to Facebook, Apple will benefit from the new app costs.
What does this mean for you?
Nothing yet, but Apple’s update that includes transparency about tracking information will be available soon, the company says. Whether you want to be tracked down or not, it’s up to you. You will still receive ads regardless. What changes is whether the ads are something you appeal to or not.
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