Camel And Facebook Like Al-Ahly, Zamalek, Real Madrid and Barcelona, ​​​​in an old and constant rivalry and rivalry, the competition intensified between the two companies when Apple launched a transparent application tracking feature, which will force applications to request permission from the user before tracking him. This negatively affected the revenue that Facebook earns through Its own advertising networkHowever, it seems that the conflict between Facebook and Apple was not always like this. And that they were once close friends and even Apple executives wanted to build business with Facebook, read on to learn about the secret conversations that could have prevented Apple's war against Facebook.


Secret conversations between Apple and Facebook

A report published by the Wall Street Journal revealed that in the years leading up to the launch of the application tracking transparency feature, Apple tried to cooperate and work with the social network Facebook and cut deals that would allow the iPhone maker to get a piece of the Facebook cake or, more clearly, a slice of Social network revenue.

One of the ideas discussed between Apple and Facebook (currently dead) was to create an ad-free version of Facebook for iPhone users in exchange for a monthly subscription. Apple insisted that the monthly subscription be through its store payment system in order to get its 30% commission of the total revenue.


Beginning of the End

Apple-Vs-Facebook

Of course, when two major profit-making companies like Apple and Facebook try to engage in discussions, the negotiations become difficult and complicated because each entity is looking for any way in order to get the most dollars.

That is why there was a clash and a dispute over whether Apple should get a part of the money generated from funded ads on Facebook, as the latter believes that Apple is not entitled to receive revenue from those ads on the social network because it is coming without the help or intervention of Apple. Also, small and emerging companies are the most used by them in order to reach more customers in addition to the fact that the iPhone maker does not take money from the ads made by the developers.

On the other hand, Apple considered the money generated by the sponsored ads as in-app revenue that it should be able to charge the commission from and after a long discussion, it was finally agreed that the two companies should cut the negotiations.

By the time the conversations ended, Facebook was working on changes to enhance privacy on the site. But co-founder and CEO Mark Zuckerberg decided at the time to delay changes in favor of user privacy in order to preserve Facebook's advertising network, from which it earns billions of dollars annually.

Once the transparency of app tracking came into effect, only 37% of iPhone and iPad users chose to keep track of them (63% chose not to be tracked). In this time, Facebook, Snapchat, YouTube and Twitter together lost about $17.8 billion in ads this year. Thanks to its transparency tracking feature, and during its battle with Apple, Meta (Facebook's parent company) market capitalization fell by $600 billion last year.

It also announced its first ever annual decline in quarterly revenue, all because Apple and Facebook are moving in different directions when it comes to user privacy. The first is keen on its own interest, which lies in protecting the privacy of users. The second is keen on violating privacy and tracking users because it runs an ad network that relies on that data for accurate and targeted ads.


Apple responded

Apple-Vs-Facebook

"We meet daily and collaborate with developers of all sizes to provide suggestions, address concerns, and help them continue to grow their business," an Apple spokesperson said.

"The rules for app developers like Facebook are adhered to equally by all developers because we believe that fair implementation results in the best user experience. There is also no connection between any discussions of partnerships and changes in the ad tracking process that were subsequently implemented.”

In the end, nothing is constant in politics and commerce, sometimes the two companies get along and sometimes they try to get rid of each other. Once Apple introduced privacy features to its users, Facebook tried to discredit Apple with traditional advertisements in the most famous newspapers. He also tried to make himself the Robin Hood of small companies to support him in his war against Apple, which is moving steadily forward without any problem.

In your opinion, if the negotiations were successful, the war would have ended between the two companies, tell us in the comments

Source:

wsj

Related articles