Apple (AAPL) is preparing to launch a new privacy feature in the next version of iOS 14, which is generating a little anger from names like the Silicon Valley titan, Facebook.
The feature, called App Tracking Transparency, has become a point of conflict between companies that Facebook (FB) is, according to The Information, considering opening an antitrust lawsuit against Apple over the matter. This comes at a time when the social media giant already supports Epic Games’ antitrust lawsuit against the iPhone maker.
So what is application tracking transparency and why does Facebook hate it so much? I have you covered.
What is application tracking transparency?
Let’s start with the basics. Your iOS and iPadOS devices have what is called an advertiser identification software tracker, or IDFA. An IDFA is an Apple random identifier that allows advertisers to track their activity on apps and the web without extracting their personal information.
Tracking your activity is important for advertisers, because it allows them to send targeted ads and determine the success of their advertising campaigns. Therefore, if you are visiting a lot of pet-related sites, IDFA can help advertisers submit ads related to pet food or toys.
Apple, however, has been promoting privacy as part of its product line in recent years and previously took steps to limit companies’ ability to track certain user activities through the Safari browser.
This is where application tracking transparency comes in. The feature, when made available with the next version of iOS 14, will provide users with a pop-up when they launch an application that wants to track their activities. The feature also keeps tracking disabled by default and will only allow you to be tracked if you request the app.
Currently, application tracking is enabled by default, although users can disable it via the iOS and iPadOS settings menus. Facebook fears that keeping tracking disabled by default and asking people to enable tracking will result in a large number of users rejecting tracking.
Why is this a problem for Facebook?
Facebook generates the vast majority of its revenue through, you guessed it, advertising. If companies cannot target ads, they may not buy as many ads. What’s more, according to Facebook’s own survey, companies that advertise on Facebook may see their revenue drop by up to 50% when application tracking transparency is implemented.
Facebook responded in style. The company, according to reports, is considering filing an antitrust lawsuit against Apple over App Tracking Transparency, claiming that Apple is just taking steps to fill its own coffers.
Facebook says that if people choose not to be tracked, the effectiveness of targeted ads will plummet. This, according to Facebook, would force app developers to offer their apps for free, subsidizing them with ad sales, to start charging for their apps and in-app purchases.
Apple charges a 30% fee for apps purchased through its App Store, the only way to get apps on iPhones or iPads, meaning that, according to Facebook, Apple would benefit from these new app charges.
What does this mean for you?
Nothing yet, but Apple’s update that includes App Tracking Transparency will be available soon, says the company. Whether you want to be tracked or not depends entirely on you. You will still receive ads regardless. What changes is whether ads are something that attracts you or not.
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