Former Employees Explain What Facebook Has to Lose When Apple Implements App Tracking Transparency

As Apple prepares to implement App Tracking Transparency changes in iOS 14.5, CNBC spoke with several former Facebook employees to get details on why Facebook has been so heavily against the planned privacy updates.

Apple vs Facebook feature
Starting this spring, Facebook and other app developers will need to get express permission to access a user's advertising identifier, or IDFA, which is used to track usage across apps and websites for ad targeting purposes. Facebook has campaigned heavily against App Tracking Transparency, taking out full page newspaper ads and attempting to position Apple as an enemy of small businesses.

One of Facebook's main arguments is that Apple's changes will hurt businesses that use Facebook's advertising tools, but former Facebook employee Henry Love told CNBC that for many businesses, the change might not even be noticeable.

Less ad tracking data will prevent Facebook and its clients from targeting ads as effectively as they can now, but a lot of businesses may not need much data for effective ad targeting. A small coffee shop in Texas, for example, likely uses broad targeting categories like zip code and age range for ads, which is data that Facebook can collect from its own apps without the need for the IDFA.

"If you talked to any restaurant owner anywhere and asked them what IDFA is, I don't think any of them would know what that is," Love said. "It's affecting Facebook at scale. Not the small business owners."

Among the few "small business owners" who might feel the effects of the IDFA change are start-ups backed by venture capital money who have hired professionals with the skills to target users with sniper precision, Love said.

People who are targeting users across mobile, web, and the Facebook Audience Network with the IDFA are "not small businesses," with Love calling such companies "sophisticated, VC-backed startups."

App Tracking Transparency will threaten Facebook's view-through conversion tracking, a metric that lets ad companies figure out how many people saw an ad, didn't click it, but later made a purchase related to the ad. Retailers can record the info of the person who bought an item and then share it with Facebook, with Facebook able to determine whether that person's IDFA matches with a user who saw an ad for the product purchased.

CNBC says that the loss of this info could heavily impact Facebook because if advertisers can't accurately measure the effectiveness of Instagram and Facebook ads, they might shift more of their budget to other apps and services.

Facebook's Audience Network, which provides advertisements in non-Facebook apps, will also be impacted because it uses IDFA data to choose the best ads to show to users based on Facebook data. If users opt out of sharing the IDFA, Facebook's ad personalization efforts will be rendered useless outside of its own apps.

Facebook is planning to ask users for permission to access the IDFA, and is testing wording that suggests the tracking will provide a better ad experience. Facebook test prompts encourage customers to allow IDFA usage to "support businesses that rely on ads to reach customers."

Popular Stories

iphone 17 models

No iPhone 18 Launch This Year, Reports Suggest

Thursday January 1, 2026 8:43 am PST by
Apple is not expected to release a standard iPhone 18 model this year, according to a growing number of reports that suggest the company is planning a significant change to its long-standing annual iPhone launch cycle. Despite the immense success of the iPhone 17 in 2025, the iPhone 18 is not expected to arrive until the spring of 2027, leaving the iPhone 17 in the lineup as the latest...
duolingo ad live activity

Duolingo Used iPhone's Dynamic Island to Display Ads, Violating Apple Design Guidelines

Friday January 2, 2026 1:36 pm PST by
Language learning app Duolingo has apparently been using the iPhone's Live Activity feature to display ads on the Lock Screen and the Dynamic Island, which violates Apple's design guidelines. According to multiple reports on Reddit, the Duolingo app has been displaying an ad for a "Super offer," which is Duolingo's paid subscription option. Apple's guidelines for Live Activity state that...
Clicks Communicator Feature

'Clicks Communicator' Unveiled — Will You Carry This With Your iPhone?

Friday January 2, 2026 6:35 am PST by
The company behind the BlackBerry-like Clicks Keyboard accessory for the iPhone today unveiled a new Android 16 smartphone called the Clicks Communicator. The purpose-built device is designed to be used as a second phone alongside your iPhone, with the intended focus being communication over content consumption. It runs a custom Android launcher that offers a curated selection of messaging...
Low Cost MacBook Feature A18 Pro

Low-Price 12.9-Inch MacBook With A18 Pro Chip Reportedly Launching Early This Year

Friday January 2, 2026 9:08 am PST by
Apple plans to introduce a 12.9-inch MacBook in spring 2026, according to TrendForce. In a press release this week, the Taiwanese research firm said this MacBook will be aimed at the entry-level to mid-range market, with "competitive pricing." TrendForce did not share any further details about this MacBook, but the information that it shared lines up with several rumors about a more...
Apple Fitness Plus hero

Apple Announces New Fitness+ Workout Programs, Strava Challenge, and More

Friday January 2, 2026 6:43 am PST by
Apple today announced a number of updates to Apple Fitness+ and activity with the Apple Watch. The key announcements include: New Year limited-edition award: Users can win the award by closing all three Activity Rings for seven days in a row in January. "Quit Quitting" Strava challenge: Available in Strava throughout January, users who log 12 workouts anytime in the month will win an ...
Low Cost A18 Pro MacBook Feature Pink

Apple's 2026 Low-Cost A18 Pro MacBook: What We Know So Far

Friday January 2, 2026 4:33 pm PST by
Apple is planning to release a low-cost MacBook in 2026, which will apparently compete with more affordable Chromebooks and Windows PCs. Apple's most affordable Mac right now is the $999 MacBook Air, and the upcoming low-cost MacBook is expected to be cheaper. Here's what we know about the low-cost MacBook so far. Size Rumors suggest the low-cost MacBook will have a display that's around 13 ...
Mac Pro Feature Blue

What's Happening With the Mac Pro?

Wednesday December 31, 2025 9:59 am PST by
Apple hasn't updated the Mac Pro since 2023, and according to recent rumors, there's no update coming in the near future. In fact, Apple might be finished with the Mac Pro. Bloomberg recently said that the Mac Pro is "on the back burner" and has been "largely written off" by Apple. Apple apparently views the more compact Mac Studio as the ideal high-end pro-level desktop, and it has almost...

Top Rated Comments

Apple_Robert Avatar
63 months ago
I think the world would be a better place with less tracking and no Facebook.
Score: 123 Votes (Like | Disagree)
AttoA Avatar
63 months ago
Did anyone really believe that Facebook cared about small businesses?
Score: 54 Votes (Like | Disagree)
jz0309 Avatar
63 months ago
can't wait for the release of 14.5 ...
Score: 42 Votes (Like | Disagree)
Rshill Avatar
63 months ago
Facebook is going to lose so hard.
Score: 34 Votes (Like | Disagree)
mossback Avatar
63 months ago
Have never had a facebook account and never will.
Score: 34 Votes (Like | Disagree)
TheYayAreaLiving ?️ Avatar
63 months ago

I think the world would be a better place with less tracking and no Facebook.
[HEADING=1]How about with NO TRACKING![/HEADING]
Score: 31 Votes (Like | Disagree)