Apple added an opt-in requirement for Facebook’s ad business but not for its own. Users, on average, will stick with the default. How is that not picking winners and losers?
When you go to Apple’s App Store, you see ads for apps. If you click on an ad and install the app, Apple gets paid for that conversion, and that will happen whether or not you’ve opted into “cross-app tracking”. If you see an ad for the same app on Facebook, Facebook will not get paid for that conversion unless you’ve opted in. The market for ads for apps is worth billions, and Apple put this “cross-app tracking” block in place, which will help them capture that market. By using their privileged position as platform owner and setting the default choice, they’ve taken over by fiat instead of through competition. Sounds like an antitrust case to me.
Why is this hard to believe? Digital content like apps have some of the highest margins out there, and conversion ROI is easy to demonstrate, so the dollars flow easily. It’s a nice business to be in, so it’s not surprising Apple is taking it from Facebook.
We don’t know exactly how much revenue Apple currently gets from ads, because it’s folded into the services category of their financial statements. Apple has set investor expectations that the services will be the main driver of revenue growth going forward, and ads are part of that.
