Investor sues Meta (Facebook) for minimizing Apple Privacy tools’ impact on ad tracking

According to a proposed class-action lawsuit, Facebook-parent Meta Platforms falsely reassured investors that the impacts of Apple’s App Tracking Transparency privacy tools “were manageable,” only to later forecast a $10 billion loss in ad revenue this year because of the changes.

Apple's App Tracking Transparency

Malathi Nayak for Bloomberg:

Meta executives failed to inform shareholders during earnings calls last year that the company’s efforts to offset any financial hit weren’t working, the Plumbers and Steamfitters Local 60 Pension Trust claimed in a securities suit filed in San Francisco federal court on Tuesday.

“Instead of being transparent with investors, defendants painted a false and misleading picture of the mitigation efforts Meta put in place to counteract the changes in iOS and rebuild Meta’s advertising business model,” the trust said in its complaint.

The suit comes as Meta is reeling from changes made last year by Apple, which require app makers to ask users if they consent to being tracked. The privacy change has severely hit Meta’s Facebook business that relies heavily on user data to sell targeted ads… The trust claims that executives only “fully revealed” the “significant headwinds” for Meta’s advertising business after it announced a grim earnings report on Feb. 2 that led to an unprecedented 27% drop in its stock price the next day.

MacDailyNews Take: The fact that Apple providing users the choice to be tracked or not via App Tracking Transparency hurts Facebook et al. not only highlights the inherent flaw in the business model of these societal cancers, it makes us laugh. 🤣

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2 Comments

  1. “not only highlights the inherent flaw in the business model of these societal cancers, it makes us laugh. 🤣”
    That’s funny and true. And a lot of people have little idea how widespread this mass data harvesting is. Google, Amazon, Microsoft, Spotify, Snap, Peloton are just a small list of how widespread Silicon Valley relies on recording everything you do through your smartphone — which is to say your non iPhone smartphone. Though IMHO Apple waited too long to start ATT and other privacy controls but better late than never.

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