War Of Labels: How Facebook Plans To Tackle Apple's New Privacy Rules

Facebook Inc FB said on Monday that it will show iPhone users prompts of its own to counter the privacy-oriented prompts Apple Inc AAPL plans to include in the smartphone’s iOS14 operating system. 

What Happened: The Mark Zuckerberg-led company said in a statement that Apple’s prompts do not provide context about the benefits of personalized advertisements. 

“To help people make a more informed decision, we're also showing a screen of our own, along with Apple’s. It will provide more information about how we use personalized ads, which support small businesses and keep apps free,” the social media said.

Facebook noted that, if a user accepts its prompts, the ads they see won’t change. Agreeing to the prompt also doesn't lead to the collection of “new types of data.”

On the other hand, declining the prompt means customers will still see ads but they would be less relevant.

“We feel that people deserve the additional context, and Apple has said that providing education is allowed,” the social media behemoth said. 

Why It Matters: Facebook claimed it had no choice but to show Apple’s prompt because if they don’t — the latter would block the social network from its App Store. 

Zuckerberg labeled Apple one of the biggest competitors of Facebook at the company’s fourth-quarter earnings conference last week. 

See Also: Facebook Says iOS 14 Will Hurt Its Business Model, Expects Audience Network Revenue To Drop 50%

Price Action: Facebook shares closed 1.42% higher at $262.01 on Monday. On the same day, Apple shares closed 1.65% higher at $134.14.

Related Link: Tim Cook Vs. Mark Zuckerberg: How The High-Profile Dispute Is Intensifying

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