Facebook and Apple battling over privacy

Facebook and Apple are engaging in a battle over data tracking and privacy. It starts with some changes Apple made to iOS 14.5. The latest Apple iOS 14.5 features the new App Tracking Transparency that gives users an option to disable tracking on apps. The feature requires apps to ask for permission before tracking user’s activity on an app.

Facebook is not too happy about it as Apple’s latest move could hurt micro-targeted ads placed on its apps. Facebook in August 2020 warned that the changes in iOS could lead to 50% drop in advertising revenue. Advertising makes up about 10% of the company’s revenue.

Facebook thrives on micro-targeted ads and it is currently persuading people to not disable tracking. Micro-targeted ads display ads from companies or brands that users have searched or spent some time on. For instance, if a user has been browsing for shirt, Facebook will display ads related to shirts on its apps, including Instagram. The social network giant believes it creates a better experience.

Apple CEO Tim Cook, on the other hand, believes rampant data collection without authorisation could lead to misuse and conspiracy theory. The concern continues to mount after Facebook is hit with privacy scandals, from Cambridge Analytica and election hacking as well as WhatsApp data collection to recent data leak.