Apple's Privacy Policy Changes

    In April, despite opposition from Facebook, Apple adjusted its privacy policy and implemented ATT. All apps on the App Store must comply with this new policy: App developers need to ask users for permission to track users or access their IDFA (Identifier for Advertising). In short, for apps to obtain and process data from Apple users, they must ask for consent.

    Facebook, Twitter and other social media stocks fell after hours, with Snap plunging 22.5% since Apple's privacy policy changes hurt the digital media advertising business. Digital ad stocks were also hit, with The Trade Desk and Magnite both down more than 5% in after-hour trading.

    Under Apple's new privacy policy, the Internet giants represented by Google and Amazon are not only affected, but they are the beneficiaries under the influence of ATT. The core difference here is that Facebook’s recommendation algorithm actually analyzes the collected user data and then pushes corresponding content and advertisements, saving users the steps of active search and making users more “lazy”. On the platforms of Google and Amazon, if users find the content and products they want, they must first express their needs to the website, whether through search or classification. Even if it also performance advertising, in the context of strengthening data supervision and Apple's new privacy policy, recommendation-based and search-based are completely different.

    Under the game of technological development and stricter regulation, changes in the power structure among Internet giants have occurred irresistibly. After a long period of time that ruled by algorithm recommendation, we will fast-forward to the next industrial revolution. For example, Facebook's choice is to simply give-up to solve the current predicament and instead bet on the distant future - the metaverse.