Apple (NASDAQ: AAPL) is delaying the development of its anti-tracking software that will make it difficult for app makers to track people online. The IOS 14 software would have apps ask permission before obtaining the device code from any Apple device. Apple planned to initiate the software later this year but allowed developers time to follow the new rules laid out in the system.
Currently, apps receive data and private information unless Apple users adjust the privacy control settings on their device.
The software would benefit the privacy of users but developers dislike Apple's new idea. Facebook (NASDAQ: FB) has been the biggest opponent against Apple and their new policy. The social network company stated that ad revenue of smaller developers and advertising companies could decline by 50%, according to TechCrunch.
"This is not a change we want to make, but unfortunately Apple's updates to iOS 14 have forced this decision," Facebook wrote in a blog post.
The social media giant said that the change may "severely impact" the ability for publishers to monetize through its Audience Network advertising platform. Facebook added that Apple's anti-tracking features may "render Audience Network so ineffective on iOS 14 that it may not make sense to offer it" on the platform in the future.
Although Apple is postponing the release of their anti-tracking tool until early 2021, the company stands firm on their commitment to protect the private information of its customers. Apple provided a recent update that developers must include a disclaimer on the Apple App Store that details how the app will collect and use customer's data.
Apple's postponement disappointed those trying to combat the digital surveillance that's inherent in online tracking, said Craig Danuloff, CEO of The Privacy Co., which recently introduced its own privacy app to help protect iPhone users from prying eyes.
"One can only see this delay as harming millions of users who do not at all understand the level of tracking that's going on," Danuloff said, quoted by CBS.
Analysts at Morgan Stanley (NYSE: MS) believe that Facebook, Snap (NYSE: SNAP), and Zynga (NASDAQ: ZNGA) will benefit most from the delay, writing in a note to clients that "the delay will give platforms and advertisers more time to build, test and scale these solutions so that net impact may end up being even smaller."