Apple has developed much of its brand image around privacy, making it not just a feature, but a key differentiator to competitors such as Google and Meta, whose business models rely heavily on targeted advertising and data collection. In 2020, Apple CEO Tim Cook delivered a direct message to iPhone users worldwide regarding online privacy. He emphasised that social media platforms like Facebook must explicitly ask for user permission before tracking their activity across third-party apps and websites.“We believe users should have the choice over the data that is being collected about them and how it’s used. Facebook can continue to track users across apps and websites as before, App Tracking Transparency in iOS 14 will just require that they ask for your permission first,” Cook said in a post on X (then Twitter).
Apple’s App Tracking Transparency feature
Months later, Apple rolled out the iOS 14.5 software update, which introduced App Tracking Transparency (ATT). The feature fundamentally altered how digital advertisers and tech platforms collect consumer data on iOS devices, sparking a high-stakes standoff between Apple and Facebook parent company Meta.Under previous iOS configurations, app developers could automatically access Apple’s Identifier for Advertisers (IDFA) system alongside third-party tracking tools. This infrastructure allowed ad networks to track user activity, create detailed consumer profiles and sell targeted advertising space.With the introduction of App Tracking Transparency, Apple has changed the default of the mechanism from automatic tracking to explicit consent opt-in. When users open an app that utilises cross-platform tracking, iOS displays a standardised system prompt requiring them to either allow tracking or request that the app refrain from monitoring their activity.If a user selects “Ask App Not to Track,” developers are prohibited from utilising the IDFA system or alternative cross-app tracking methods. Following the change, Meta said that the privacy change Apple made to its iOS operating system would dent the social media company’s sales by about $10 billion.“We believe the impact of iOS overall is a headwind on our business in 2022. It’s on the order of $10 billion, so it’s a pretty significant headwind for our business,” Meta CFO Dave Wehner said on a call with analysts after the company’s fourth-quarter earnings report.
