Despite Pushback, Apple is progressing on app privacy

Published: Apr 2021

The world of internet advertising is boosted by an update of the Software powered by a billion iPhones on Monday, with an increased privacy risk. Apple will begin requiring app makers to tell users what information they wish to collect to track and obtain permission to do so, by displaying the so-called 'privacy nutrition label.' Apple's work over the last months led to a large gap between Facebook and other technology competitors and could have important implications for data protection and the mobile ecosystem. Digital advertisements are the livelihood and payment of free online content and services for internet giants such as Google and Facebook.

An update to iOS software which powers iPhone, iPad and iPod devices includes a "Transparency App Tracking Framework," which prevents apps from tracking users or accessing a device without permission that identifies data. Apple told to the developers this week in an online message: "Only if the user gives you permission to enable tracking, the advertising identification value of the appliance will be all zero and you cannot track it." According to Apple, “the requirement that some developers have adopted early is applicable to all iOS apps as on Monday. The use of digital mobile advertising cannot be ignored through the definitions of Apple as 'tracking' — the mobile business model should explicitly remove it from the ecosystem." A shift to the mobile operating system that could potentially hamper the effectiveness of digital ads might be significant with over one billion iOS powered devices in active use worldwide. Platforms like Facebook or Google that rely on advertising are generally only payable if somebody does something like clicking on a marketing message. Announcements became irrelevant because users are less familiar with them which could mean less clicks and less revenue.

Mobile applications and more broadly speaking, the Internet have flourished through information, games & driving instructions and is free of charge. While people with iPhones may allow tracking, marketers fear that many will choose to keep privacy alive. In an earning call in early this year, Facebook warned that Apple is likely to tighten its target ads with its changes to its mobile operating system. Facebook CEO Mark Zuckerberg told us that, with a rival smartphone messaging service and tight grip on the app store, Apple is now one of his most prominent competitors on the iPhone. "Apple has every reason to use its dominant platform to stop the frequent work of our apps, as well as other applications," Zuckerberg said. "Apple may say that they help people with this but the movements clearly monitor their competitive interests." The social networking giant argued that the new data collection and targeted ad measures by the iPhone maker would harm small companies.

"Whatever is good for the consumer and good for the brands, advertisers have to be important to people without stalking them," Creative Strategic Analyst, Milanesi said. "Transparency is always something we should aim for, I think is right for Apple." Milanesi added.