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Facebook founder Mark Zuckerberg
Images ANDREW CABALLERO-REYNOLDS / AFP / Getty
Trouble is breaking out between
Apple
and
Facebook.
In a conference call Wednesday after
Facebook
(ticker: FB) reporting on earnings, CEO Mark Zuckerberg took over
Apple
(AAPL) to work, saying that Apple ‘s upcoming changes to its ad tracking technology are for its own benefit and not for the benefit of people, as Apple has said.
“Apple may be saying that they are doing this to help people, but it is clear that the trends are monitoring their competing interests,” CEO Mark Zuckerberg said in the call earnings late Wednesday. “And I think this dynamic is important for people to understand because we and others are going to be against this in the future. ”
The upcoming change that Zuckerberg mentions is an arcane part of Apple’s mobile iOS software that helps ad-selling companies keep track of what people do on their phones aca. The tracking technology is used by Facebook – and many other advertising-based businesses – to target ads more effectively, thus increasing their value.
In December, Apple CEO Tim Cook said Apple believes people should have a choice about what data is collected about them, and how it is used. He made the point in a tweet that Facebook can still track people, but soon it needs to ask permission to do so.
It’s unclear when Apple plans to launch the update, but Facebook has long argued that if Apple goes ahead with its plans, it will do the most harm to small businesses is moderate. These types of companies require precise targeting technology to place ads in front of their customers, as opposed to making a specific state purchase or a specific zip code. Big companies are able to make big purchases, Facebook officials have said.
But Facebook seems to go far beyond strong word-of-mouth employment call statements.
According to a report in the briefing Thursday, lawyers hired by Facebook are preparing an antitrust suit against the iPhone maker. The suit reports that Apple’s rules for its App Store are unfair. To list an app in the Apple store, developers like Facebook have to adhere to a number of rules, such as using their payment system.
Zuckerberg also raised a specific issue in the employment call with Apple’s App Store practices. “I want to point out that we are increasingly seeing Apple as one of our biggest competitors,” said Zuckerberg. “IMessage is a key tool of their ecosystem. It comes pre-installed on all iPhones and pre-installed it with private APIs and licenses which is why iMessage is the most used messaging service in the US. ” An API, or app programming interface, allows developers to integrate their apps with popular software platforms.
It was not immediately clear whether Facebook intended to proceed with the lawsuit against Apple.
Epic filed a similar suit last year against Apple, amid a publicity blitz and made an argument after the company tried to implement their own payment system within a popular Fortnite videogame. Epic has asked courts to force Apple to change their business model for their app store.
Despite Facebook ‘s issues with Apple, Baird technology analyst Colin Sebastian wrote in a note to clients Thursday that Facebook is one of the strongest and most innovative internet platforms. He wrote that upside is down for his core industries, and called the quarter “strong” while noting that growth during the year could slow.
Facebook shares closed Thursday with a 2.6% decline to $ 265.