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Apple's new iPhone operating system is making it harder for Facebook to track people, and Facebook says it will decimate part of its business

Apple's new iPhone OS is making it harder for Facebook to trace people, and Facebook says it'll decimate a neighborhood of its business






Facebook is saying that Apple’s planned privacy protections will severely damage a neighborhood of its business.
Apple plans to make it harder for apps to trace users’ data without their consent in iOS 14.




Facebook said this might severely hurt its Audience Network ad network, reducing revenue by up to 50%.


Audience Network is just one a neighborhood of Facebook’s broader ad business, and thus the corporate said the changes would also hurt businesses that use it.


On Wednesday, the Silicon Valley-headquartered social-networking giant published a blog post decrying changes Apple has planned for its iOS 14 mobile OS .

 Apple intends to prevent apps apple from tracking users using their unique device identifier, or IDFA, without their explicit permission – something that Facebook’s Audience Network uses to personalise advertising in third-party apps.

Facebook said that doing so would have an enormous impact on Audience Network, cutting its revenue on iOS by up to 50% thanks to an inability to deliver more valuable, targeted advertising. 

it's getting to even force Facebook to stop developing Audience Network for iOS altogether, the company said.

“This isn't a change we might wish to form , but unfortunately Apple’s updates to iOS 14 have forced this decision. we all know this might severely impact publishers’ ability to monetise through Audience Network on iOS 14, and, despite our greatest efforts, may render Audience Network so ineffective on iOS 14 that it's getting to not add up to provide it on iOS 14 within the longer term ,” the blog post said.

Audience Network is simply one piece of Facebook’s revenue (it’s unclear precisely how much), and its core business of advertising inside its own apps are getting to be unaffected. But any decide to curtail data collection can pose a threat to Facebook, and thus the corporate has recently been vocal about the risks that regulators and platform changes pose.

During a recent earnings call with analysts, company executives argued that Facebook was a “lifeline” for small businesses during the pandemic which preventing them from effectively targeting people with ads could have dangerous “macro-economic effects.”

It’s an argument that Facebook reiterated in its Wednesday blog post: “We understand that iOS 14 will hurt many of our developers and publishers at an already difficult time for businesses. We work with quite 19,000 developers and publishers from around the globe and in 2019 we paid out billions of dollars. Many of these are small businesses that depend on ads to support their livelihood.”



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