Speaking Up for Small Businesses

Summary

Apple's iOS 14 AppTrackingTransparency policy requires apps to display a prompt that discourages users from allowing tracking, which undermines personalized advertising. Facebook argues this policy is profit-driven, as it pushes developers toward subscriptions and in-app payments subject to Apple's 15-30% commission, and exempts Apple's own ad platform. This change threatens free apps and small businesses that rely on targeted ads to efficiently reach customers, potentially causing a 60% drop in ad-driven sales.

During the pandemic, small businesses have increasingly depended on such ads for survival. Facebook contends that personalized ads and privacy can coexist, but Apple's unilateral move prioritizes its own revenue over industry collaboration. Consequently, many free services may need to charge users or exit the market, disproportionately harming small businesses and content creators.