"Unfair" vs "Violent"... Zuckerberg and Tim Cook in Direct Confrontation

Privacy Policy Sparks IT Giant War

Mark Zuckerberg, CEO of Facebook [Photo by Reuters Yonhap News]

[Asia Economy Reporter Yujin Cho] Facebook and Apple, two leading information technology (IT) companies in the United States, have come into direct conflict. The controversy over the shrinking mobile targeted advertising market triggered by Apple's new privacy protection policy appears to be escalating into a legal battle between the two IT giants.

On the 28th (local time), Bloomberg News reported, citing an anonymous source, that Facebook is considering filing an antitrust lawsuit against Apple. The core of the allegation is that Apple is using its market-dominant position to interfere with how competitor apps operate on its platform.

◆ Apple's Privacy Protection Policy Sparks Dispute, Zuckerberg Calls It "Unfair" = Behind the lawsuit between the two companies lies Apple's new privacy protection policy. Apple's latest operating system version, iOS14, plans to introduce an 'App Tracking Transparency' feature that prohibits tracking users' app activity records.

This aims to increase data transparency by allowing users to check how their data is processed within apps and to grant them the right to choose. However, it is expected to significantly impact the revenues of social media companies like Facebook, which generate income by providing personalized ads to users. Bloomberg reported, "The app tracking transparency policy applied in iOS14 will have a considerable impact on the targeted advertising operations of social media companies such as Facebook."

Mark Zuckerberg, CEO of Facebook, openly criticized Apple. During the Q4 earnings conference call held the previous day, Zuckerberg said, "Apple gains a lot by obstructing Facebook and other apps," and added, "Apple's policies, including the iOS14 update, will harm millions of small and medium-sized businesses worldwide that rely on targeted advertising." According to him, over 60% of targeted advertising revenue for small social media companies depends on this.

CEO Zuckerberg harshly condemned the policy change as a move for Apple's unfair advantage. He also pointed out, "Apple's iMessage privacy policy is weak compared to Facebook or WhatsApp," and noted, "The market dominance of iMessage in the U.S. is a result of Apple's unfair advantage."

Apple CEO Tim Cook
Photo by Yonhap News

◆ Tim Cook Strikes Back: "Advertising Business Based on User Data" = Apple CEO Tim Cook quickly responded. At a data privacy conference held in Brussels, Cook rebutted, saying, "The business model that collects users' personal information and uses it for targeted advertising is violent."

He stated, "Businesses that allow indiscriminate attacks on users, misuse user data (for their own profits), and leave no choice in advertising use are not worthy of praise," and added, "We must call for reform of the practice of selling user data for advertising revenue."

Facebook, already severely damaged in corporate trust and business environment due to the personal data leak controversy triggered by the 'Cambridge Analytica scandal,' now faces even greater business uncertainty with Apple's policy changes added on.

The market also reacted sensitively. Despite Facebook announcing Q4 earnings that exceeded expectations, its stock price fell for two consecutive days. On that day, Facebook's stock closed at $265.00, down 6.05% from the previous session. Facebook is currently facing antitrust lawsuits from the U.S. Federal Trade Commission (FTC) and 46 state governments, accused of hindering market competition through predatory practices of acquiring potential competitors related to its acquisitions of Instagram and WhatsApp.

This content was produced with the assistance of AI translation services.