Apple CEO Tim Cook on stage during an Apple event in September 2018.
With the big change in Apple’s application tracking policy approaching, Chinese companies have received a warning from Cupertino that their efforts to circumvent the change will not be successful. At the same time, Facebook CEO Mark Zuckerberg seemed to change his message about the change.
Several months ago, Apple announced that it will require user opt-in for IDFA (Identifier for Advertisers), a tool that advertisers use to identify and track users across apps and websites. If users accept, everything will continue as usual. But if they refuse, the application in question will not be able to use this tracking method. The change will apply to all iPhone and iPad apps, and will take full effect on iOS 14.5, which is expected to launch in the coming weeks.
ByteDance, Baidu and others retreat
Press coverage so far has focused on the United States and European countries struggling with change, especially Facebook, which ran ads and examined the possibility of an antitrust lawsuit to combat Apple’s decision. Several reports in the past few days have indicated that some of China’s top technology companies are no less determined to fight or circumvent Apple’s new policy.
Baidu, Tencent and ByteDance are among Chinese technology companies looking for alternative solutions. Bloomberg reports that these companies sought several ways to collect data and track users, despite Apple’s policy, including fingerprinting, “which uses device-specific information, such as the IMEI number and location to create a unique identifier.” And they are also testing a system called CAID. Developed by a government think tank and the China Advertising Association, this system can be used “as a replacement if the user’s IDFA is not available.”
The companies’ efforts prompted Apple to issue a statement clarifying that the next changes apply to all company applications around the world, not just those developed and maintained in the United States:
The App Store terms and guidelines apply equally to all developers worldwide, including Apple. We strongly believe that users should be asked for their permission before being tracked. Applications that disregard the user’s choice will be rejected.
Even so, the actions of these companies threaten to put Apple in a difficult position. China accounts for at least 15% of Apple’s business. Although it is too early to make absolute predictions and it depends on the role the Chinese government chooses to play here, it is plausible that this situation could worsen to the point that Apple would have to make a decision on whether to continue doing business there or change course to do so. special ad tracking rules for that country that differ from those in effect in other regions.
Zuckerberg changes his tone
Speaking in a chat at the Clubhouse on Thursday, Zuckerberg took a more positive stance on Facebook’s ability to thrive with the coming change. “We will be in a good position,” he said. “We will be able to get through this.”
Facebook had previously run full-page ads in newspapers suggesting that Apple’s move could fatally injure countless small businesses, and Facebook CFO David Wehner postulated last year that the move would lead to a 50% drop in its bottom line. advertising business on the Audience Network.
Zuckerberg also took an aggressive initial stance against the change in the company’s latest quarterly earnings conference call, and The Information reported that he was working with the attorney to build an antitrust case against Apple as a way to combat policy change.
But yesterday, Zuckerberg came to say:
It is possible that we may be in a stronger position if Apple’s changes encourage more companies to conduct more trade on our platforms, making it more difficult for them to use their data to find customers who would like to use their products outside of our platforms.
Although the message is different, the planned actions of the companies do not seem likely to change. Apple will still require Facebook apps to ask users for permission to track them, and Facebook still plans to agree to the change so that it can continue to make its apps and services available to iOS users.