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Facebook vs Apple: The conflict between the two Tech giants

brendasisse | 02.03.2021 | 0 | Tech , Technology

A privacy change coming to the software that powers Apple’s popular iPhone has prompted a war in the Silicone Valley. Facebook vs Apple: The conflict between the two tech giants

A coming update to Apple’s IOS that is IOS 14 operating system will let you know if an app wants to track you and Facebook isn’t a fan.

Facebook however has been fuming about the change, which threatens the source of its $86 billion in annual revenue: targeted ads. Social media has waged a months-long campaign against Apple, alleging that Apple’s changes are designed to help the iPhone maker’s own business rather than protect consumer privacy.

“Apple may say that they are doing this to help, but the moves clearly track their competitive interest,” Facebook CEO Mark Zuckerberg said in January during the company’s fourth-quarter earnings call. Apple CEO Tim Cook responded by saying “users should have the choice about them and how it’s used.”

HOW FACEBOOK AND APPLE MAKE MONEY:

Apple sells smartphones and laptops and takes a cut of fees charged to the app developers.

Facebook sells ads that it can target precisely based on the trove of data it collects on its 2.8billion monthly users.

HOW IT ALL STARTED:

Apple said at its annual developers conference in June that it would introduce a feature to its IOS that required users to give apps permission to track them across various apps and websites. With the IOS update, iPhone users will see a pop-up that explicitly says an app wants to track them.

The pop-up will also give users a chance to opt-out of tracking.

This announcement wasn’t a great joy for Facebook since it uses this data to show personalized ads to people. Facebook was clearly unhappy with Apple and the company didn’t hesitate and made it known publicly. The social network ran full-page newspaper ads stating clearly that Apple’s update will harm small businesses and consumers.

Apple reassured by clearly stating that its changes give users more control over other data and transparency into what is collected.

Facebook reacted in a blog post saying” without personalized ads powered by their own data, small businesses could see a cut of over 60% of website sales from ads.”

However, the Harvard Business Reviews says Facebook findings are “misleading” and suggested the impact will be modest.

On one hand, we have the social network Facebook which expresses fear of the loss it might make due to this new change brought about by Apple and on the other hand, we still don’t really have a clear idea of the motive behind Apple’s new IOS update. It’s clear that no business tycoon will invest just for happy customer service without actually having any benefits from it.

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