The Big Tech Privacy Conundrum
Evidence of the increasing blurriness of Big Tech’s approach to user data privacy—particularly how data is shared and who it is shared with—is plentiful. Namely, this predicament always points to the Big Four. First of all Facebook (now under the Meta Platforms Inc. umbrella) has had multiple issues with this. Secondly, Google‘s shaky reputation is well-established. Now, Apple is under the spotlight. Recent remarks by Proton founder Andy Yen yet again underline the tech industry’s general disrespect towards user privacy. The sudden shift in Big Tech’s behavior was to be expected, and it looks like the Big Four are at an interesting precipice. Building public distrust in tech companies has reflected in mass user migration to alternative services. Adding to that recent scandals have pushed the industry over the edge. To top it off, constant pressure from the digital advertising industry to push in favor of data collection has also manifested in abrupt changes of attitude and policy in the industry.
The Ad Industry, Apple And Data Collection Practices
Now, “brands are relying more heavily on search engine and social-media companies” such as Google and Meta, as the global advertising industry aims for “higher growth” that will continue throughout 2022, said Reuters. Advertising agency GroupM’s president Brian Wieser told Reuters that the pandemic has also had a lot to do with it as new businesses “formed during the pandemic needed to find customers, while others likely maintained ad spending to stay in front of consumers’ minds.” Wieser also confirmed that the advertising industry is seeing unprecedented growth. Apple is a brand that belongs to the exclusive Big Four club, enshrines itself in a cool temple of excellence and simplicity, and constantly reminds the world about its extremely sensitive approach to user privacy. This is evident in both Apple’s official privacy documentation as well as being a central part of the company’s core values. On the other hand, FT pointed to a recent shift to a new way of using “anonymised” and “aggregated” data processing which is cutting it close. According to FT “For anyone interpreting Apple’s rules strictly, these solutions break the privacy rules set out to iOS users.” The privacy rules set out by Apple outline that developers must avoid direct identifiers such as names or user IDs when it comes to data collection.
Key Points From The FT Report
The FT report underlines several issues when it comes to Apple and privacy. It seems that “Apple is allowing companies to continue gathering user data seven months [from May] after introducing new privacy rules.” In doing so, Apple has permitted app developers “to collect data from its 1bn iPhone users for targeted advertising.” This “unacknowledged shift” is resulting in a “looser interpretation” of privacy standards. FT exemplified Apple’s newfound emphasis on privacy that manifested itself in an “advert that featured a harassed man whose daily activities were closely monitored by an ever-growing group of strangers.” The advert then went on to promote the “Ask App Not to Track” feature on the man’s iPhone which led to the strangers vanishing. “Apple’s message to potential customers was clear — if you choose an iPhone, you are choosing privacy” said FT. The report then stated that “Snap”—who confirmed plans of sharing the data of 306m users—and Facebook have “been allowed” to share “user-level” iPhone signals, “as long as that data is anonymised and aggregated rather than tied to specific user profiles.” Sheryl Sandberg, Facebook operations chief, also confirmed they are doing the same. According to FT, the chief executive of AppsFlyer Oren Kaniel stated that such “privacy-centric” tools based on this new aggregated measurement caused huge “pushback” from “the entire ecosystem.” Now, this new form of data processing is already very popular, according to Kaniel. He added that the market has changed radically.
The Sins of Adtech
Cory Munchbach, customer data platform BlueConic’s chief operating officer, offered her insights on the “sins” of adtech. According to FT, Munchbach said that this new way of looking at “user-level data once it has been anonymised,” is what companies are pledging to do. However users cannot know “if their data privacy is being preserved,” without access to algorithms and data “behind the scenes,” she said. “If historical precedent in adtech holds, those black boxes hide a lot of sins.” FT added that Apple has refused to answer questions, “but described privacy as its North Star, implying it was setting a general destination rather than defining a narrow pathway for developers.” Judging from the FT report, it does look like the privacy landscape impasse will remain for some time to come.
