Daily Management Review

Apple Accused By Facebook Of Anticompetitive Behaviour On Changes In Privacy Rules


Apple Accused By Facebook Of Anticompetitive Behaviour On Changes In Privacy Rules
Apple Inc has been accused by Facebook Inc to engaging in anticompetitive practices adding on to the standoff between the two companies that have been ongoing for the last few months over the changes to its [privacy practices brought in by Apple for its iOS14.
“Apple is behaving anticompetitively by using their control of the App Store to benefit their bottom line at the expense of creators and small businesses. Full stop,” Facebook Vice President for Ads and Business Products Dan Levy told reporters.
Facebook will not be required to change its “approach to tracking users and creating targeted advertising” because of its new rules, Apple said in response, and added that instead Facebook will be required to its users on Apple devices the choice of agreeing or rejecting those practices.
“We believe that this is a simple matter of standing up for our users. Users should know when their data is being collected and shared across other apps and websites — and they should have the choice to allow that or not,” Apple said in a statement.
Full-page ads in major newspapers criticizing Apple’s plans were issued by the biggest social media company of the world in which the company alleged that the move by the iPhone maker will restrict the ability of apps to gather data from people’s phones which can then be used for targeted advertisements.
The new prompt requirement that the iPhone maker is planning to impose on other companies will however not include Apple’s own personalized ad platform, Facebook said in a blog post.
In June Apple had said that a pop-up notification will be required for such activity in which the iOS users will be asked to allow “permission to track you across apps and websites owned by other companies,” and most digital advertising companies expect that such a request will be denied by most users.
Facebook will comply with the new rules and display a prompt on Apple devices even though the social media company does not agree with the new rules on privacy by Apple, Levy said. “We don’t have a choice if we want our app to be available in the App Store,” he said.
No comments was made by him about Facebook taking any action to retaliate against the new policy of Apple.
The issue of commission fees that the iPhone maker charges apps listed on iOS devices has also been a bone of contention between the two companies and Facebook has said that it supports the small app developers who have been the one most impacted by the commission policy of Apple.
It had joined the Coalition for App Fairness, said Digital Content Next, a digital media trade association representing members such as The New York Times and The Washington Post on Wednesday which added on to the opposition against Apple.
A call on regulators all over the world to fight “anticompetitive” app store practices of Apple such as the 30 per cent revenue cut on purchases made within apps as taken by Apple, has been made by the non-profit organization which includes members like Epic Games and Spotify.
A notification to its users about Apple’s fees was attempted to be pushed by Facebook previously but said that its “transparency notice” was rejected by Apple.
In a federal antitrust lawsuit filed by Epic Games that challenged the rules for commission, Facebook said in a blog post that it was “committed to providing relevant information”. However the social media company did not specify how it would participate in the litigation.