Tech

Apple is postponing a privacy update for iOS 14 after Facebook said it would gut its ad revenue

Tim Cook Mark Zuckerberg
Apple CEO Tim Cook (left) and Facebook CEO Mark Zuckerberg. AP; Francois Mori/AP
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Apple is giving developers some breathing space to get ready for an update to iOS 14 that will let users opt out of being tracked for advertising purposes.

The update was supposed to be released as part of iOS 14, which is expected to roll out this month. In a statement on Thursday, however, Apple said it was delaying this particular part of the update until 2021.

"We want to give developers the time they need to make the necessary changes, and as a result, the requirement to use this tracking permission will go into effect early next year," Apple said in blog post on Thursday.

When Apple announced the privacy update, it drew the rancor of developers who said it could wreak havoc on their ad-revenue streams. Facebook said the update could slash revenues from its Audience Network by up to 50%. The company added that the change might even lead it to stop developing its Audience Network for iOS altogether.

"This is not a change we want to make, but unfortunately Apple's updates to iOS 14 have forced this decision. We know this may severely impact publishers' ability to monetize through Audience Network on iOS 14, and, despite our best efforts, may render Audience Network so ineffective on iOS 14 that it may not make sense to offer it on iOS 14 in the future," Facebook said in a blog post on August 26.

Separately, Apple and Facebook have been engaged in a bun fight over the commission Apple takes off in-app payments.

Facebook asked Apple to waive its usual 30% commission as part of an update that would let users buy tickets to Facebook events in the app. Apple refused, and Facebook tried to add a note for iOS users alerting them to the fact that 30% of their payment would be going to Apple. Apple then blocked Facebook's update, including this note, on the grounds it contained "irrelevant information," Facebook told Reuters.

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Isobel (she/her) was a senior tech reporter at Business Insider. She was particularly interested in Big Tech, privacy, and worker's rights. You can read some of her previous work here: The quest to find $181 million in bitcoin buried in a dump Exclusive: Amazon targeted military spouses in a pandemic recruitment drive. 2 of them say they ended up being paid 33% less than non-military coworkers. Exclusive: Amazon plans a pay cut of up to 23% for hourly workers who guide trucks in and out of its UK delivery stations Exclusive: Tesla's solar division asks employees to scour social media for complaints about both the company and Elon Musk, trying to get customers to delete their posts, former employees say A couple says their Tesla Solar panels caused relentless leaks that led to mold 10 times the healthy limit, $115,000 in damages, and a long-running legal battle Ghosted by Tesla: Customers say Tesla's ultrasleek, expensive Solar Roofs and panels come with nightmare customer service, often leaving them with unanswered calls and emails for months on end Amazon workers leading a historic push for unionization in Alabama describe midnight 'education' meetings, an unexpected mailbox, and streams of anti-union flyers as they go up against one of the world's most powerful companies 'It's a slap in the face': Amazon is handing out 'Thank you' t-shirts to warehouse workers as it cuts their hazard pay Investigation: Amazon warehouse employees speak out about the 'brutal' reality of working during the holidays, when 60-hour weeks are mandatory and ambulance calls are common The science behind Elon Musk's brain-chip company Neuralink Investigation: Instagram's new TV service recommended videos of potential child abuse