Apple's new app privacy requirement draws Facebook's ire

NEW YORK - Apple's latest operating system requires every single app in the App Store to receive permission from its users before tracking their online activity.

"Is this good for Apple?" Techstream podcast co-host Shelly Palmer asked. "Doesn't hurt them. Doesn't help them. It's just part of their privacy narrative."

But Palmer confirmed this does hurt companies like Facebook, which made $86 billion last year nearly exclusively from selling targeted ads.

"Oh, it hits them hard," Palmer said.

Facebook directed FOX 5 NY to a webpage of company statements dating back to December, all opposing iOS 14.5's opt-in requirement, portraying the change as devastating to small businesses.

"The Apple iOS update has the potential of bringing a big portion of my business to a screeching halt," a small business owner said in a video produced by Facebook.

"I don't actually know that it's going to hurt small businesses very much," Palmer said, "but it's certainly hitting Facebook where it hurts."

More than 98% of Facebook's 2.8 billion users access the platform from their phones. With 900 million iPhones in use on this planet, that represents a very large chunk of consumers (who spent money on a $1,000ish phone) whose online activity, browsing, scrolling, and clicking Facebook can no longer track.

"If you have to opt-in, you're not going to," Palmer said.

Facebook, which, by the way, also includes Instagram and WhatsApp, relies on this data to serve us ads we're more likely to click on.

"Because they make money when you interact with the advertising," Palmer said.

Apple did not respond to FOX 5 NY before this story was broadcast.