Technology giant Apple released its latest software update -iOS 14.5.- for the majority of its devices on April 26. The update was first released at the developer beta level on February 1 and then a second build was put out on February 4. Since the announcement of the new update, Facebook has strongly objected to the features that the social media giant believes hampers its business. This has created a bitter feud between the two tech giants. 

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Here is all you need to know about the battle between Facebook and Apple:

What is the feature that hurts Facebook?

The app tracking transparency will require iPhone users to choose whether to let applications track them across other apps. It will ask the users for their permission before allowing any app to collect their IDFA tag.

What is an IDFA tag?

The Identifier For Advertisers (IDFA) tag is a unique device identifier that is used in conjunction with cookies and tracking pixels to create a virtual database of each user.

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Why does app-tracking hurt Facebook?

Facebook, use IDFA to target ads at the user and estimate its effectiveness. Facebook’s tracking cookies follow users around the web, to learn about their behaviour on the internet.

However, the new Apple update brings the App Tracking Transparency feature and iPhone users will be explicitly asked for permission from users to use this IDFA. If the user denies, Facebook will not be able to track any data. 

Apple users constitute a significant proportion of Facebook’s user base. According to CNBC, Facebook is likely to lose around $8 billion if 80% of Apple users refuse to let apps collect their IDFA information. 

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What did Facebook say?

Facebook CEO Mark Zuckerberg said that the privacy changes will hurt the growth of ‘millions of businesses around the world’, as Facebook has targetted small-scale businesses with relevant ads for them to grow during the pandemic. 

What did Apple say?

Apple CEO Tim Cook at a data privacy conference in Brussels, said, “If a business is built on misleading users, on data exploitation, on choices that are no choices at all, it does not deserve our praise. It deserves reform.”

What are the latest developments?

Facebook and Apple reported record Q1 revenues on Wednesday. Apple has rolled out the update and users have started installing it. Mark Zuckerberg and Facebook are yet to take a strong step against the new update.