“Apple prefers its own ads while limiting third-party ads”

Apple is planning to introduce a system that allows users to directly control advertisement tracking by application programs using user personal information. In response to this move, France Digitale, a lobbying organization representing French startups and venture capitalists, has filed with CNIL, the French privacy regulation, saying that Apple is preferring its own advertisements while restricting advertisements from other companies.

Targeted ads that track user web activity and display ads tailored to user interests and interests based on that data can show ads that are more likely to drive buying behavior than regular ads. Meanwhile, there are concerns that targeted ads are violating commercial privacy, so Apple has announced that it will change the iPhone ad identifier IDFA specification and disable IDFA unless users allow ad tracking.

In response, Facebook, whose main revenue is advertising, argued that target advertising would be difficult due to the revision of Apple’s privacy policy, which would lead to a sharp decline in advertising revenue. Display advertisements that are optimized for individual users are important for small and medium-sized businesses that cannot spend a large amount of money on advertising expenses, and are also conducting advertisements notifying the importance of target advertisements.

Apple’s planned ad tracking restriction apps need explicit user consent before sharing user data with third-party companies, including vendor ad networks. In other words, sharing data in one ad network itself is not a problem, and Facebook can share data between its own applications such as Messenger, Instagram, and Facebook.

However, small developers don’t have the resources to build their own ad networks and are forced to rely on third-party ad networks to display targeted ads. In this regard, it is also pointed out the possibility of creating a content five-seat that surrounds user data as a first party after being decided as one company by repeating acquisitions and sales of several companies.

Meanwhile, on March 9, 2021, a lobbying organization, France Digital, filed with CNIL, saying that while Apple strictly restricts third-party ad networks, it is preferring its own ad networks. France Digital’s objection concerns the advertisements that Apple displays in its applications based on information collected through its own apps. Looking at Apple advertisements and privacy statements, it is recorded that advertisements delivered by the Apple advertising platform can be displayed on the App Store and Apple News. France Digital argues that the advertising function is not sufficiently well known to users because the iPhone is activated.

The Apple ad network is by far the first party, and nothing goes against attempts to restrict data sharing between third parties. But France Digital said Apple has the right to choose who is a partner or a third party in some way. It is pointed out that it is possible to expand the range of the ad network without notifying users.

In response to French Digital’s claim, Apple said the claim was false. He refuted that it was wrong to neglect his behavior of tracking users, and to misunderstand regulatory and policy makers. In addition, Jane Horvath, head of privacy at Apple, said that when a user chooses an Apple-customized ad, the ad is targeted by grouping users who share similar characteristics, such as the downloaded app and age, country of residence or city, and gender. It claimed that it does not identify individual users. Related information can be found here.