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Mark Zuckerberg, CEO of Facebook.
Facebook founder Mark Zuckerberg declared war on Apple. This is because Apple has stated that, starting next year, it will put in an additional ‘gateway’ that will require application developers to seek user consent when tracking user data. It is a kind of privacy policy. In this case, it is difficult for Facebook, which is in the business of advertising based on user data, to make ‘personalized ads’ and take a direct hit. The New York Times of the USA Japan evaluated on the 16th (local time) that “depending on which company wins, the appearance of the Internet may change in the coming years.”
Great tech war, what happened?
On the 16th, Facebook ran a full-page ad criticizing Apple’s policy in major US newspapers such as The New York Times, The Washington Post, and The Wall Street Journal. It was titled “We Will Fight Apple for Small Business Owners Around the World.” Apple has announced that it will remove unauthorized apps that track user information from the App Store through an update to the iPhone operating system early next year. All apps in the App Store must disclose what data they collect and how they use it. Facebook’s interstitial ads arise from a context that opposes Apple’s actions.
Facebook Full Page Ad Against Apple’s Privacy Policy
Facebook claims that Apple is engaging in anti-competitive behavior in a way that it uses its control over the app store to increase its own revenue at the expense of app developers and small businesses. Looking at the interstitial ad posted by Facebook today, “Our data shows that without personalized ads, the average small business advertiser will see a drop in sales of more than 60% per ad dollar.” It also affects, but this change will completely destroy small businesses. “
Zuckerberg’s Facebook CEO also instructed company employees not to use iPhones. According to the New York Times, a day before Facebook’s full page ad, Zuckerberg asked employees to use an Android phone, not an Apple iPhone. In the information technology industry, Zuckerberg’s leadership is attributed to recent statements by Apple CEO Tim Cook that “Apple does not trade your personal life. Privacy is a human right for us, and that it is citizenship “. . Since Facebook uses advertisements that use user’s personal information as a business model, Tim Cook’s comments were interpreted to be directed directly at Facebook.
Tim Cook said, “I wouldn’t have been in a situation like that” when asked by the media, “What would you do if you were in a Zuckerberg situation?” He responded and criticized Facebook’s leak of personal information. Zuckerberg immediately responded with “very loud words” and Facebook also wrote in a blog post that “Tim Cook was constantly criticizing our business model and Zuckerberg made it clear that he disagreed.”
Zuckerberg, why are you angry?
The reason Zuckerberg is so upset is that Apple’s actions could potentially shake up the online advertising business, which accounts for 98% of Facebook’s total sales. In the third quarter of this year, Facebook posted total sales of $ 2.17 billion, of which $ 212 billion in advertising sales. Including Instagram sales added separately, Facebook is the world’s number one online advertising platform, surpassing Google, which runs YouTube. Currently, 10 million customers are advertisers on Facebook. We have engaged clients by extracting personal interests through artificial intelligence (AI) deep learning and connecting them with small and medium-sized businesses that need such data.
Facebook application.
With the privacy policy that Apple will implement starting next year, Facebook may no longer be able to provide “personalized customer information” that it provided to SMEs. For example, when an iPhone user launches the Facebook application, a popup appears asking: “Will you allow Facebook to track your activity on other company websites and applications?” Otherwise, data tracking will be blocked. In this case, of course, Facebook will not be able to provide the information advertisers want.
Facebook predicted that Apple shares would cut ad sales in half. This is because, in the digital advertising industry, when a data tracking related pop-up appears, almost 90% of users expect to hit the “Decline” button. The New York Times said: “The key to the Facebook backlash is that the way you make money with Apple is the opposite, and depending on which company wins, the look of the Internet will change in the coming years.” It is a fight for corporate hegemony between two ‘big tech’ companies.
Apple sees the ‘privacy business’ as a new strategy that may take over IT technology in the future. In 2016, Apple introduced the concept of “differential privacy”, a technology that understands user behavior patterns without infringing on personal information. It is a technology that understands the behavior patterns of users without infringing on personal information. It is an equation that collects data as an approximation rather than a specific data value and corrects it with a deep learning process. Also, last year, after unveiling a more improved ‘Apple Login’ compared to Google and Facebook, at the Consumer Electronics Show (CES 2020) earlier this year, “Apple looks at privacy from the stage of product design. There’s a culture of doing this. “
On the other hand, Facebook is making “small business and Internet freedom” as its cause. This is because “data openness” is essential to protect the existing business model and, at the same time, improve the convenience of information for consumers. However, Facebook has a painful history. This is because in March 2018, Facebook leaked data from more than 87 million users through Cambridge Analytics, a data analytics firm. Zuckerberg directly apologized after being criticized for passing access to user data too easily to a third party. Therefore, it is necessary to be attentive to the actions of Apple to determine in which direction the hegemony of the Internet will go in the future in terms of “privacy” versus “data openness.”
Reporter No Jeong-dong Hankyung.com [email protected]
