Skip to main content

Market Overview

Apple Warns App Makers: Don't Even Think About Unauthorized Tracking

Share:
Apple Warns App Makers: Don't Even Think About Unauthorized Tracking

Apple Inc. (NASDAQ: AAPL) is warning Chinese app developers and tech companies not to circumvent its new privacy rules that are expected to roll out this spring, according to a report by the Financial Times.

What Happened: The new feature will require apps to obtain permission from users before tracking them, according to Apple.

However, tech companies in China are testing multiple workarounds for the new feature so as to continue tracking users without their permission, as per the FT report.

Apple has reportedly sent warnings to at least two Chinese app developers who were testing methods to circumvent the feature. One of the app developers used a system called CAID, developed by the state-backed China Advertising Association.

Five of China’s biggest tech companies, including Baidu Inc. (NASDAQ: BIDU), Tencent Holdings Ltd. (OTC: TECHY) and ByteDance are testing or implementing CAID to identify users in the future, according to FT. Other proposed workarounds use a process known as fingerprinting. 

See Also: After Months Of Bitter Fighting, Zuckerberg Now Sees Facebook Benefiting From Apple's Privacy Rule Changes

Why It Matters: Apple’s upcoming privacy changes will give users more privacy from mobile advertising but is unpopular with app developers, many of which are small businesses.

Facebook Inc. (NASDAQ: FB) too has heavily criticized Apple’s proposed privacy changes, taking the stand that it is against small businesses. Earlier this month, the company’s CEO Mark Zuckerberg claimed that the privacy changes would make it harder for small businesses to reach customers using targeted advertising.

Facebook said in August last year that it observed a 50% drop in Audience Network publisher revenue in its testing. The social media giant is the second-largest recipient of advertisement revenues after Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL).

Price Action: Apple shares closed about 3.4% lower on Thursday at $120.53.

Read Next: Apple's Rumored AR Headset To Feature Eye Tracking, Iris Recognition For Payments: Analyst

 

Related Articles (AAPL + BIDU)

View Comments and Join the Discussion!

Posted-In: App Store China iPhone User PrivacyNews Tech Media Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com