iPhone privacy measures cost social media companies $ 10 billion

Facebook has been very active in its criticism of the new iPhone data protection measures that Apple planned for iOS 14 and finally enabled in iOS 14.5, and now we know better why: The measures have cost the company money.

Facebook is not alone with this fate; Other social media companies have also lost revenue due to changes to Apple’s mobile operating system. But maybe not so much. For example, Twitter recently claimed that the impact on your bottom line was minimal.

The Financial Times [paywalled article] has examined how much money is involved and estimated how much sales for Facebook, Snapchat, Twitter and the Google subsidiary YouTube have fallen after the introduction of so-called app tracking transparency.

In total, the four are said to have potential revenues of nearly $ 10 billion – about $ 7 billion.

According to the newspaper report, Snapchat was hit the hardest as the platform only exists on mobile and cannot track users in any other way. The report also says that Facebook is working on rebuilding its entire infrastructure to sell advertisements to iOS users.

In its criticism of the measures, Facebook claimed to stand up for smaller companies than itself. It created a webpage titled Speaking Up for Small Businesses and argued that “Apple’s new iOS 14 policy will have detrimental effects on many small businesses struggling to stay afloat.” The FT’s numbers suggest that Facebook’s motivations may have more to do with the success of a bigger company: yourself.

To cite both sides of the argument, we should add that Tim Cook responded to criticism from Facebook by saying that “Facebook can continue to track users across apps and websites. App tracking transparency in iOS 14 only requires that they ask for your permission first. ” You can read more of his refutation here.

This article originally appeared on Macworld Sweden. Translation (with DeepL) and additional reporting by David Price.

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