iOS privacy changes will cost Facebook $10 billion in revenue this year


Facebook Vs Apple

According to CNBC, Facebook parent company Meta said on Wednesday that privacy changes made in Apple’s iOS operating system last year will seriously affect its finances. The company claims that the privacy changes will cause a $10 billion revenue loss. 

Facebook

“We think iOS will have a negative impact on our business overall in 2022,” Meta CFO Dave Wehner said on a conference call with analysts after the company’s fourth-quarter earnings report. Facebook directly acknowledges the impact of Apple’s App Tracking Transparency feature on the advertising business. This feature reduces targeting capabilities by restricting advertisers’ access to iPhone user identifiers.

“We’re just estimating the overall impact of the cumulative changes in iOS on our 2022 revenue forecast,” Wehner said. “If you aggregate the changes we’ve seen on iOS, it’s an order of magnitude change. We can’t do that. It’s very precise, it’s just an estimate.”

Apple App Tracking Transparency

Last year, Apple announced that it would launch a feature called “App Tracking Transparency”. This feature will allow people to better control their data. Crucially, this feature allows users to choose whether advertisers can track their activities. For Facebook, this is a huge problem, because Facebook makes unimaginable profits by selling targeted ads. Facebook has publicly stated that this will harm its business.

Apple Vs Facebook

Apple subsequently postponed the proposed changes until this year to allow developers time to prepare.

Apple executive, Jane Hovarth, outlined the reasons for the delay in a letter. Horvath couldn’t help being furious at Zuckerberg: “Facebook executives have made it clear that their intention is to collect as much data as possible. This disregard for user privacy continues to grow.”

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Facebook countered: “They use their dominant market position to choose the data they collect while making it almost impossible for competitors to use the same data. They claim that it’s about privacy, but it’s actually for profit.”

To Apple, this is like sprinkling salt on a wound. For a long time, Apple is proud of its business model and it believes that it is nobler than Facebook. According to reports, as early as 2010, Apple co-founder Steve Jobs warned Facebook to pay attention to privacy issues. In 2018, Cook said that he could have imitated Facebook and used data to sell advertising, but “we chose not to.”

Now, Facebook can no longer send targeted ads to millions of iPhones globally. This is exactly why Facebook is losing billions in revenue. However, there are suggestions that the changes in privacy are a signal that Apple may want to compete in the global advertising market.

Source/VIA :
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1 Comment

  1. Linked Devices
    February 12, 2022

    The idea that Apple and Samsung, the only 2 high security cleared devices are the same as fb Google and the rest represented by alphabet like some kinda anti fellowship of the rings is just trying to create a self fulfilling prophecy. Apple and Samsung are incentivised to be cleared for high security I e. Why they're the only mobile devices that are nsa certified and thusly across the globe.

    If they didn't have their rich feature sets and privacy and security as their selling points there'd be no options except to just give in to Google Facebook etc.

    Both Apple and Samsung also partnered with disconnect pro. Google made their position very clear by banning the version that was available for stock Android but only had the ability to report who and how frequently you're being tracked and not actually block the tracking.

    Apple should follow Samsung lead and distort your selfie cam by mirroring it as well. No one notices but it creates a layer of biometric protection. Google's tos literally states they collect your biometrics for their use. Samsung and Apple both store your biometrics only locally, Apple in its secure enclave, Samsung in Knox, both are completely air gapped from any ability to be transmitted or even accessed for anything other than unlocking the device.

    Similar to Samsung and their mirroring their selfie cams, Apple's lidar projector system is lower resolution deliberately for app developers so they can't use it to capture your biometric facial signature