Apple's Privacy Ad Armageddon Helps Familiar Tech Giants
The iPhone maker’s new protocols that allow users to block tracking by apps may seem like a victory for the consumer, but they also benefit Facebook and Google.
Get ready to see more of these privacy notifications popping up on your iPhone.
Photographer: Beth Williams/Bloomberg
What some have called the mobile advertising Armageddon is finally upon us. Starting on Monday, Apple Inc. will put in place new privacy protocols that will make it much harder for apps to gather user data for personalizing digital ads. The change will have vast ramifications for how the app economy works and alter the dynamics of power among the top platforms, advertisers and app developers. But it also comes at a pivotal moment for the industry: Just when governments around the world are looking to clamp down on the rising dominance of the largest technology companies, Apple’s latest initiative could further strengthen the hand of those same giants at the expense of smaller rivals.
Apple revealed on Tuesday that its next software update for iPhones, rolling out next week, includes its AppTrackingTransparency requirement. The long-awaited privacy feature will for the first time force all apps to request permission to track a user’s activities across other companies’ apps. Some analysts project more than half of consumers will decline tracking. Several companies have also expressed their uncertainty over the issue. Online dating app Bumble Inc. cautioned in its prospectus that more than 80% of users may decide to opt out, while Snap Inc. acknowledged on Thursday that Apple's changes were an important milestone and could significantly affect how they work with advertisers.