Changes in Apple's privacy cost millions of losses to Facebook and Twitter

Changes in Apple’s privacy cost millions of losses to Facebook and Twitter

Technology

When a large technology company makes changes to its internal policies, it indirectly affects other companies that depend on it in some way. Such is the case of Apple, a firm that in April 2021 modified its policies in its mobile operating system, affecting other firms, including Facebook (today Meta) and Twitter.

Recently, a series of reports on the profits of social media companies revealed that the scope of the damage related to iOS privacy changes is great. The change is estimated to cost social networks $10 million in lost revenue in 2022 alone, according to information confirmed by its CFO, David Wehner.

The new iOS update meant that users decide whether or not to accept ad tracking by social media apps. If users refuse to accept it, this action translates into economic losses for Facebook or Twitter, two of the social networks most affected by this change.

Apple with this practice revived its old opt-out function, which was located in the settings menu. Now, whenever users open an app or social network for the first time, the option appears in the foreground.

See also  Google developing artificial intelligence baby monitor

Due to this situation, Sheryl Sandberg, director of operations of Meta Platform explained to the media that the changes in iOS created two very big challenges for the brand. “We are facing headwinds, because of Apple’s decision, ad targeting has decreased and measuring results has become more difficult, this maneuver will cost us too much,” she said.

This situation has already impacted the parent company of Facebook, Instagram and WhatsApp, as Meta’s shares fell 25% on the Stock Exchange last Thursday, February 3, 2022. For this reason, Sandberg hopes that Apple’s decision can be modified in the future. course of the year and reach an agreement with the Cupertino, California-based company.

Regarding Twitter, its shares fell 8% for the same reason; from being worth $84 per share, it is now priced at $65. UBS, one of the largest banks in the world, placed shares in the social network at $50 in order to maintain the market. Despite the drop, financial institutions say that Twitter is recovering its value faster than usual.

See also  iPhone 11 Pro uses location data despite disabled settings

So far, there is no clear picture of the real impact that the new policy changes will have on Apple’s iOS operating system. In terms of privacy, the company gained more trust from users. However, social networks could lose millions of dollars by not having ad tracking.