Apple Inc has decided it would set until at least early 2021 a move to roll out its latest privacy control option that social media giant Facebook earlier opposed.
The update to Apple's iOS 14 operating system will enable users to refuse being monitored for advertising purposes. The update was initially planned to be launched as part of the iOS 14 software, which is estimated to hit the shelves this month.
However, Apple said it is putting off the privacy measures intended to block apps and websites from tracking users online without their permission. Apple said the revisions were being rescheduled to give software engineers and websites ample time to observe how the new update behaves before integrating it to their services.
Facebook criticized Apple's new feature, claiming it would hurt publishers and advertisers as they would no longer be able to efficiently monitor prospective clients with personalized advertising materials.
Facebook chief executive officer Mark Zuckerberg said the ability of third-party advertisers to make money through its Audience Network on Apple's new app feature would, in particular, be essentially ruined.
According to Zuckerberg, the update could cut sales from its Audience Network by up to half, adding that the feature might even prompt it to abandon its Audience Network for Apple's software altogether because it is not the kind of change they expect and want.
As a result, Facebook said it would stop collecting users' ad-monitoring identifications on the iOS 14, and that Apple's proposition had forced the group to carry out such a decision. Apple gadgets including the iPad, iPhone and Apple TV console are assigned with a distinct identification called Identifier for Advertisers, or IDAF.
Apple's share price was down 8 percent in regular sessions Thursday to settle at $120.88 a share – about where it stayed on Friday. Although the Cupertino, California-based tech behemoth shed nearly $180 billion because of the plunging share price, the group still has an enviable market cap of more than $2 trillion.
Once Apple's app update gets the green light next year, it will be inactive by default and advertising companies will need permission to access the feature. Another security feature will highlight when an app accesses data on the user's clipboard.
Based on data by eMarketer, the mobile advertising business in the U.S. hit $87.3 billion last year. Around the world, ad spending on app installs reached nearly $58 billion in the same year and was expected to rise to $118 billion in 2022, AppsFlyer data showed. And yet, Apple is not even part of the picture. Instead, the company only offers Search Ads in its App Store.
