Facebook and Apple spar over the upcoming App Tracking Transparency feature in iOS 14

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Update 1 (18/12/2020 @ 12:25 pm AND): Added Apple’s recent comment. Scroll down for more information. The article as published on December 17, 2020 is kept below.

In June 2020, Apple announced that the iOS 14 update to its mobile operating system would introduce a mechanism that allows users to opt out of in-app ad tracking by refusing to share the IDFA ID with app developers. This feature, called App Tracking Transparency, drew ire from advertising giants about how it would affect their business. Apple has delayed implementation of the feature until 2021 so developers can tweak their apps. But with 2021 looming, ad giants like Facebook are once again falling back to Apple for the feature.

App Tracking Transparency framework essentially asks for user authorization to access app-related data for tracking user or device. And in a separate policy update, Apple requires apps in the Apple App Store to provide users with more details about the personal information. The list of each app shows the most important information about the collected data and a summary of the privacy policy.

This policy update, coupled with the upcoming App Tracking Transparency feature, prompted Facebook to lash out at Apple with a series of full-page ads in leading newspapers such as the New York Times, Wall Street Journal and Washington Post (via Bloumber).

Facebook states that these changes to iOS will extend to small businesses, limiting their ability to display personalized ads and reach their customers effectively. According to Facebook, small business advertisers could see a discount of more than 60% in their sales for every dollar they spend on ads, as those ads would no longer target the right customers.

Facebook also published a blog post on the matter, further arguing that the changes will force companies to move into subscriptions and other in-app payments for revenue, some of which will then go to Apple (though smaller developers will have their ‘Apple’ tax ”reduced to 15%). Furthermore, Apple’s own personalized advertising platform would be exempt from the new iOS 14 policy changes. Facebook also has no choice but to show the necessary opt-out prompts, even though they absolutely disagree with the changes in light of the impact this would have on the businesses it wants to support.

Facebook continues its swipe at Apple by saying it is acting anti-competitive by using the App Store’s iron grip to capitalize on its own bottom line at the expense of app developers and small businesses. And for this reason, Facebook is also providing relevant information in the Apple vs Epic Games lawsuit about how Apple’s policies are negatively affecting Facebook and those who use the social media giant’s services.

Apple has responded to Facebook’s criticism, saying in a statement (via The edge) that is it “stand up for our users“.

We believe this is a simple matter of standing up for our users. Users need to know when their data is being collected and shared with other apps and websites – and they should have the choice whether or not to allow it. App tracking transparency in iOS 14 doesn’t require Facebook to change its approach to user tracking and targeted ad creation, it just requires them to give users a choice.

Apple’s statement comes as Facebook released a second ad (via The edge) entitled “Apple versus free internet“.

This new ad claims that Apple’s iOS 14 privacy changes “is changing the internet as we know it“And enforce websites and blogs”to charge you a subscription feeOr add in-app purchases due to a lack of personalized ads.

To add a bit more context to Facebook’s PR campaign, here’s what the new privacy section in the App Store looks like for the official Facebook app:

It remains to be seen how this war of words ends. Needless to say, a lot of money is at stake on either side of the fence. Both companies would like you to believe that their case is the most legitimate and only one. But the truth is probably somewhere in the middle, closer to the business ideals of profit.

Update: Apple’s response

Apple CEO Mr. Tim Cook responded to Facebook’s attacks with a simple answer:

Mr. Cook is essentially suggesting that Apple should give users a choice and not force them to opt out of all tracking. By extension, Facebook’s attacks indicate that users will choose to largely opt out of tracking when given this choice. So it becomes essential to Facebook’s business that users are not given this choice.

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