The lawsuit against Apple is being prepared to protest a new feature on iOS 14, which Facebook says “strangles third party developers”.
According to the The InformationThe antitrust lawsuit has been prepared by Facebook for months with the help of legal experts.
The lawsuit alleges Apple misused its market power to force third-party developers, including Facebook, to comply with regulations that are not subject to Apple apps.
For example, iOS developers must integrate in-app payments, not be redirected to their own website or payment system.
Facebook is preparing an exclusive lawsuit against Apple. Photo: Axios.
The lawsuit also focuses on a new policy on iOS 14 that requires apps to consult before tracking user behavior on other apps and websites to collect data.
Initially, Apple wanted to implement the change as soon as iOS 14 was released in 2020. But at the last minute it moved the rollout to give apps time to change.
“We believe that Apple is acting non-competitive, abusing control of the App Store to profit from developers and small businesses,” a Facebook spokesperson shared with Business Insider.
However, the source predicts that there is a possibility that Facebook will not file a lawsuit. Facebook leaders are reportedly suffering from employee objections about the lawsuit.
The incident took place in the context of a series of technology companies such as Facebook, Apple, Amazon, Google being monitored with actions and policies that were considered non-competitive, abusing power to overpower competitors. Facebook has trouble with its lucrative advertising business, and Apple faces criticism for its policy on the App Store.
Conflict between Facebook and Apple has been around for years, at least since 2014, when CEO Tim Cook criticized Facebook’s business model. During Facebook’s quarterly financial report for the fourth quarter of 2020 on January 27, CEO Mark Zuckerberg directed his nose to Apple.
“We also see that Apple’s business is increasingly dependent on gaining market share in apps and services,” the founder of Facebook said that Apple is taking advantage of its dominant position to intervene in apps. He emphasized that Apple is one of the biggest competitors with its core platform, iMessages.
“So Apple has an incentive to interfere with the way our apps and other apps work, creating their own advantages,” Zuckerberg said.
Apple was criticized by advertisers for adding the feature to show the window to follow users on iOS 14. Photo: AppleInsider.
Facebook and Apple have also competed in data collection. In the November 2020 post, Apple accused Facebook of “saving as much data as possible”. Soon after, Facebook responded by accusing Apple of abusing its power to collect user data.
User data is inherently useful information to target advertisers and measure marketing effectiveness. David Fischer, Facebook’s Chief Revenue Officer, says the company’s personalized advertising model is at stake as Apple is about to introduce privacy changes on iOS 14.
Meanwhile, Apple says the change is aimed at protecting user privacy, not attacking the advertising industry. The regulation comes after many scandals involving businesses collecting user data, and Facebook is one of them.
According to the Zing / Business Insider
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