How Apple’s New iPhone update could harm Facebook’s ad business?

Apple  announced that as part of the iOS 14 update, apps will require to ask users for permission to collect and share data using Apple’s device identifier.

The new feature will let users control which data each app can access, including clipboard notifications and also an option to disable tracking between apps.

But the feature is causing problems for some developers, especially Facebook is worried about its ad business. Facebook is specifically concerned with its Audience Network advertising business.

According to a report by 9to5, Developers use trackers to identify each user in different apps and websites so they can target advertisements based on what you access on your device. Even if users leave this option enabled, third-party apps will have to ask permission for tracking and collecting your personal data.

But, Apple requires app developers to ask for permission before they track you or your device across apps or websites they don’t own in order to target advertising to you, measure your actions due to advertising, or to share your information with data brokers

This will negatively impact Facebook’s Audience Network used by advertisers and publishers. The social platform claims to have paid out billions of dollars to its 19,000 developers and publishers around the world, many of which are small businesses.