Ties between the two giants of the planet, Apple and Facebook, are rapidly heating up. New laws to protect consumer data are being enforced by Apple, and Facebook says it is affecting small businesses.
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Apple is making improvements to iPhone settings related to mobile owners’ privacy rights. A pop-up window will appear in each program that uses user data: you accept that your activities are being tracked by the application.
Information was historically gathered by smartphones, not because it was concealed from consumers, but few individuals became involved in the specifics of the settings in depth. Apple now maintains that any consumer can give their consent as consciously as they can. Not everyone will, most certainly, approve.
To fine-tune the advertisements and monitor their success, user information is gathered. Facebook provides marketers a broad spectrum of advertising options: advertisements may be served, taking into consideration their preferences and other details, by choosing a selection of viewers attributes.
“Billions of dollars change hands every day, and countless decisions are made based on our likes and dislikes, our friends and families, our relationships and conversations, our desires and fears, our hopes and dreams. These scraps of data, each of which is harmless enough in itself, are carefully collected, synthesized, exchanged and sold, said Tim Cook, Apple CEO at the 2018 privacy conference.
While this impassioned speech does not mention Facebook, it was clear that what was said also referred to the business of Zuckerberg.
In response, Mark Zuckerberg attacked Apple, calling their privacy stance “a ridiculous concept.” “If Apple was on your side, it would make their products cheaper,” he said in a 2014 Time interview.
A fight against Apple has now been initiated by Facebook, launching a special page that says the latest rules would deal a crushing blow to small companies. Entrepreneurs who have lost the opportunity to target correctly will have to invest several times more on ads, and they are still living through tough pandemic times. In exchange, consumers will see commercials that they are not interested in and do not profit from.
Yet Facebook itself will be the largest sufferer. The business gets 99 percent of its revenues from advertising, which last quarter totaled more than $20 billion.
The Federal Trade Commission (FTC) has sued the firm, accusing it of establishing anti-competitive practices for app developers and marketers, and Facebook is now facing other advertising-related issues.
The new rules may damage free software developers who are now collecting funds from advertisement revenue.
Craig Federighi, senior vice president of product development for Apple, said that the company would delete applications from the App Store beginning in 2021 that monitor users without authorization. At the same time, it is forbidden for developers to use coercion on users, such as providing access to the application only to those who choose to use the data. By doing so, Facebook claims that Apple will push developers to release only premium versions of software and will gain more sales as a result.
In response to criticism, Apple revealed that it is introducing a small business assistance scheme that would halve fees to small developers in favor of the App Store by 2021.
The acts of Apple also cause uproar among advertisement industry leaders, who might loss convenient resources. The organization has its own SKAdNetwork, but it does not satisfy the needs of advertisers who are used to learning a lot about their future clients.
Apple maintains, however, that users of iPhones should be able to preserve a higher degree of privacy. Companies are making false arguments for status quo of violating the privacy, said Federighi.
Recently, Google made improvements to the Chrome toolbar by withdrawing third party cookie support. It is also a trend in favor of anonymity, reducing targeted advertisement possibilities. Maybe Android devices are waiting for the rules to change, close to Apple’s updates, but Google has declined to comment so far.
The updated guidelines for Apple will take place early next year, but at the moment Apple share is already surpassing the average target price of $127. Both shares, in medium terms are likely to fell and there would be more margins for investors in FB stock which is about 29% currently but for couple of weeks FB is prone to lose some more grounds.
