Apple has launched a new iOS policy for privacy labels on the app store. Apple has promised to provide more transparency about iOS app data collection, hence this update has been alleged to do just that. However, since their announcement in December of 2020, Facebook has come out to take a stand against this policy. Here is what has been happening the past month and how it may affect you.
What is Apple’s iOS 14 Policy?
According to the new Apple iOS 14 Policy, all apps are obligated to acquire new labels and be up to date if they want their app on all platforms, This includes iOS, iPadOS, macOS, watchOS, and tvOS. They have also claimed to be following the same standards. This update is enforced with the help of AppTrackingTransparency of iOS 14. Users will also be able to have the option of disabling personalized ads and hence, will have more privacy from targeted ads.
Potential Impact of iOS 14 Policy
This policy is estimated to have a huge impact on a lot of groups that might be dependent on app stores for their income.
Impact On App Developers
App developers will be impacted the most due to the standards set by the new policy. Certain small developers will not be able to acquire the labels necessary to get their apps on the app stores. Hence, they will not get any exposure or users. They will just have an app that is unable to get on any platform which can be detrimental to their career as well as to the careers of many small app development companies. In addition to all this, these standards have also been estimated to wipe the unpopular or free apps from existence. These are the apps that provide free services and are not as well known as other big-name apps.
Impact On Content Creators
The impact on content creators will be due to the removal of personalization of advertisements. Many content creators on various platforms, like Youtube, Tiktok, Instagram, etc., rely heavily on ads for their income. These ads when watched or engaged by their followers will earn them revenue from those platforms. It has been estimated that because of the disabling of personalized ads, content creators will experience more than a 50% drop in revenue on all platforms.
Impact On Small Businesses & Entrepreneurs
Small businesses as well as entrepreneurs also rely on personalized apps to launch their business and get customers. This is because they tend to have small budgets and they cannot launch huge marketing campaigns so personalized targeted ads are all they have to get their business out there in the public eye.
Impact on Large Businesses & Companies
Large businesses have been estimated to grow even more due to this new policy. Apps that were previously free will start charging users for their services.
Impact on Apple
Apple’s new policy will impact Apple the most positively as the new standards will push businesses and app developers into a more business model that has been designed completely by Apple, themselves. There are two ways for this to benefit Apple.
Due to the decrease in revenue, if content creators start to charge for subscriptions, then that money will be subject to apple tax which is ranging from 15% to 30%. These changes alone will increase Apple’s overall profits by around 50 billion dollars.
Apple doesn’t apply the same standards of no personalized ads for itself on any of their platforms. They are not playing by their own rules so Apple’s own products are receiving personalized advertisements while small businesses and app developers are going out of business.
Facebook’s Stand Against the New iOS 14 Policy
Facebook has taken a very public stance against the new iOS 14 Policy by Apple. According to the statements made in their Speaking Up for Small Businesses response, here are the key points raised by Facebook.
- Facebook disagrees with Apple’s approach but they will comply because they do not want to be kicked off of the app stores. They have said it would only hurt the small businesses that rely on Facebook for their income.
- Facebook believes that Apple is behaving in an anti-competitive way by taking advantage of having so much influence on the app store and hurting small businesses.
- Facebook believes that personalized ads and user privacy can co-exist without the damage iOS 14 policy is causing in its wake.
- Facebook is committed to standing up for small businesses and the use of personalized ads to bring users free content.
- Facebook has urged its partners to speak up as well.