Apple's Privacy Measures to Cost Facebook $10 Billion in 2022

Facebook has said measures being taken by Apple on iOS that make it harder for platforms and apps to track users across other apps and websites will cost its business $10 billion in 2022.

tim cook mark zuckerberg
Facebook yesterday reported $33.67 billion in revenue, and while higher than expected, earnings per share were shy of analyst expectations. Facebook, renamed to Meta, also offered lower guidance for the first quarter of 2022, saying it would be expecting around $27 to $29 billion in revenue, short of $30 billion expectations (via CNBC).

As it has done in the past, Facebook shifted blame for its weaker performance during the past quarter onto steps being taken by Apple to improve user privacy. Most notably, Apple's App Tracking Transparency (ATT) framework, which requires apps to ask users for permission before tracking them across other apps and websites, is negatively impacting Facebook's business, the company's chief operating officer, Sheryl Sandberg, claimed during the earnings call.

First, ads. Like others in our industry, we’ve faced headwinds as a result of Apple’s iOS changes. As we described last quarter, Apple created two challenges for advertisers. One is that the accuracy of our ads targeting decreased, which increased the cost of driving outcomes. The other is that measuring those outcomes became more difficult.

The impacts of Apple's privacy measures will represent more significant challenges to Facebook's business in the next quarter, according to Facebook's chief financial officer, David Wehner. "And we believe the impact of iOS overall as a headwind on our business in 2022 is on the order of $10 billion, so it's a pretty significant headwind for our business," said Wehner.

Wehner also went on to accuse Apple of favoring Google in its privacy policy. Wehner said that ATT exempts browsers from asking users for permission to track them across other apps and websites, therefore allowing browsers like Chrome to be more effective in tracking users for personalized ad purposes.

Wehner accused Apple of favoring Google's Ad Search since "Apple continues to take billions of dollars a year from Google Search ads, [so] incentive clearly exists for this policy discrepancy to continue."

And if you look at it, we believe those restrictions from Apple are designed in a way that carves out browsers from the tracking prompts Apple requires for apps. And so what that means is that search ads could have access to far more third-party data for measurement and optimization purposes than app-based ad platforms like ours.

So when it comes to using data, you can think of it -- that it's not really apples-to apples for us. And as a result, we believe Google's search ads business could have benefited relative to services like ours that face a different set of restrictions from Apple. And given that Apple continues to take billions of dollars a year from Google Search ads, the incentive clearly exists for this policy discrepancy to continue.

Daily active users (DAUs) also took a hit in the past quarter, with Facebook reporting for the first time on record a drop in the number of daily users using its platform. DAUs stood at 1.93 billion in the final quarter of 2021, lower than 1.95 billion from the previous quarter. Still, Wehner said during the company's earnings call that DAUs were up 5% year-over-year.

We estimate that approximately 2.8 billion people used at least one of our Family of Apps on a daily basis in December, and that approximately 3.6 billion people used at least one on a monthly basis. Facebook daily active users were 1.93 billion, up 5% or 84 million compared to last year. DAUs represented approximately 66% of the 2.91 billion monthly active users in December. MAUs grew by 115 million or 4% compared to last year.

Facebook CEO Mark Zuckerberg previously shifted his outlook on Apple's ATT framework, initially saying it would hurt Facebook but later saying it could benefit the company in the long term.

Top Rated Comments

eddjedi Avatar
9 months ago
Finally, some good news
Score: 100 Votes (Like | Disagree)
wanha Avatar
9 months ago
"Better locks on doors are costing burglars millions."
Score: 65 Votes (Like | Disagree)
robinp Avatar
9 months ago
This is hilarious. Finally someone stops facebook. Strange that it was Apple rather than a government, but at least brakes have been applied.
Score: 47 Votes (Like | Disagree)
trifero Avatar
9 months ago
Translation…

“Apple’s privacy measures is preventing Facebook from stealing 10 billions in 2022”
Score: 41 Votes (Like | Disagree)
_Spinn_ Avatar
9 months ago
Good that means what Apple is doing to protect users is working.
Score: 40 Votes (Like | Disagree)
TheYayAreaLiving ? Avatar
9 months ago
I wish it could cost Facebook a lot more than $10 Billion dollars in 2022. Hopefully, Apple makes it even harder for companies like Facebook to track users' data.
Score: 35 Votes (Like | Disagree)

Related Stories

craig wwdc 2021 privacy

Report Highlights How Top Apple Executives Disagreed Over How Far iOS Anti-Tracking Measures Should Go

Monday March 14, 2022 7:19 am PDT by
A new report has highlighted how three top prominent executives initially found themselves at odds in early deliberations about Apple's App Tracking Transparency framework. According to the report from The Information, the executives who disagreed over how far Apple should go in protecting user privacy in digital advertising included Apple's Craig Federighi, who oversees software...
us subscription revenue 2021

Sensor Tower: iOS Users Spent $13.5 Billion on Top 100 Subscription Apps in 2021, Up 31% Year-on-Year

Friday February 25, 2022 3:21 am PST by
Consumer spending on the top 100 non-game subscription-based apps across mobile platforms grew 41% year-on-year to $18.3 billion in 2021, up from 13 billion in 2020, according to a new report from analytics firm Sensor Tower. According to the data, revenue from subscription apps purchased on the App Store and the Google Play Store represented around 14% of the $131.6 billion that consumers...
Instagram Feature 2

Instagram Limits Users' Ability to Limit How Much Time They Spend in the App

Tuesday February 22, 2022 2:52 am PST by
Instagram has quietly removed the ability for its users to limit their daily usage of the app to less than 30 minutes, reports TechCrunch. In 2018, Instagram introduced options in the app to set a daily time limit, with a reminder to be sent when that time limit is reached – useful for those who want to cut down on their social media usage. Originally, users were able to select a time...
tim cook mark zuckerberg

Apple's Privacy Rules to Blame for Facebook's Lower Than Expected Quarterly Growth, Says Zuckerberg

Tuesday October 26, 2021 3:46 am PDT by
Apple's privacy rules are "negatively affecting" Facebook, and its business, Facebook CEO Mark Zuckerberg claimed during its most recent earnings call. As a quick refresher, starting with iOS 14.5 and all newer versions of iOS and iPadOS, Apple requires that apps ask for users' permission to track them across other apps and websites. Under the App Tracking Transparency (ATT) framework, the...
craig wwdc 2021 privacy

Apple's Privacy Features Have Cost Social Media Companies Nearly $10 Billion in Revenue

Monday November 1, 2021 4:42 am PDT by
As a result of its privacy features, Apple has cost social media companies including Meta, formerly known as Facebook, Twitter, Snapchat, and YouTube, nearly $10 billion in revenue in the second half of 2021, according to an investigation by the Financial Times. The Financial Times found that most users have opted out of tracking using Apple's App Tracking Transparency (ATT) framework, a...
applegoogle

Google Basically Pays Apple to Stay Out of the Search Engine Business, Class Action Lawsuit Alleges

Wednesday January 5, 2022 3:02 am PST by
Apple has an agreement with Google that it won't develop its own internet search engine so long as Google pays it to remain the default option in Safari, a new class action alleges. Filed in a California court earlier this week against Apple, Google, and their respective CEOs, the lawsuit alleges the two companies have a non-compete agreement in the internet search business that violates US...
generic tracking prompt green

Report: iOS Users Who Opt-Out of App Tracking Continue to Be Tracked by Facebook and Snapchat

Wednesday December 8, 2021 5:50 am PST by
"Loose" interpretations of Apple's privacy policies allow apps such as Facebook and Snapchat to continue tracking users for targeted advertising even when they have asked to not be tracked, The Financial Times reports. In May, Apple launched its App Tracking Transparency feature that allows users to opt-out of being tracked across apps and websites for advertising purposes. Seven months...
apple lineup except the ipad is sad

Apple Reports All-Time Quarterly Revenue Records for iPhone, Mac, Wearables, and Services

Thursday January 27, 2022 1:50 pm PST by
Apple today reported its earnings results for the fourth quarter of 2021, which corresponds with the first quarter of the 2022 fiscal year. Overall, Apple reported revenue of $123.9 billion, which is an all-time quarterly record for the company. On a category-by-category basis, Apple also set all-time quarterly revenue records for the iPhone, Mac, Wearables, and Services:iPhone: $71.6...

Popular Stories

USB C Over Lightning Feature

EU Passes Law to Switch iPhone to USB-C by End of 2024

Tuesday October 4, 2022 3:30 am PDT by
The European Parliament today voted overwhelmingly in favor of enforcing USB-C as a common charging port across a wide range of consumer electronic devices, including the iPhone and AirPods, by the end of 2024. The proposal, known as a directive, forces all consumer electronics manufacturers who sell their products in Europe to ensure that a wide range of devices feature a USB-C port. This...
ipad pro purple

Five Apple Products You Should Avoid Buying Right Now

Wednesday October 5, 2022 2:12 pm PDT by
Rumors suggest that Apple still has several new devices that are coming before the end of the year, including a range of Macs and iPads. It's not looking like we're going to get an October event in 2022, but refreshes are coming soon, probably via press release. If you're planning to buy a Mac or an iPad, make sure to check out our list to know what's safe to pick up now and what's not. iPad ...
General iOS 16 Feature Yellow

10 New iOS 16 Features Coming Later This Year

Monday October 3, 2022 2:41 pm PDT by
iOS 16 was released to the public three weeks ago with a customizable Lock Screen, the ability to edit iMessages, improvements to Focus modes, and much more. And in the coming months, iPhone and iPad users have even more new features to look forward to. We've rounded up 10 new features coming to the iPhone and iPad later this year, according to Apple. Many of the features are part of iOS...
magsafe charger orange

Apple Releases New MagSafe Charger Firmware

Tuesday October 4, 2022 12:09 pm PDT by
Apple today released updated firmware for the MagSafe Charger that is designed to work with the iPhone 12 and later and the AirPods Pro 2. The new firmware is version 10M1821, up from the prior 10M229 firmware. Note that in the Settings app, you'll see a different version number than the firmware number, with the update displayed as version 255.0.0.0 (the prior firmware was 247.0.0.0). The...
maxresdefault

Video: AirPods Pro 2 vs. Bose QuietComfort II

Monday October 3, 2022 12:50 pm PDT by
Apple on September 23 officially launched the second-generation version of the AirPods Pro, introducing updated Active Noise Cancellation, Adaptive Transparency, improved sound, and more. Right around the same time, Bose introduced new QuietComfort II earbuds with many similar features, so we thought we'd compare the two to see which has the edge. Subscribe to the MacRumors YouTube channel for ...
General iOS 16 Feature Yellow

One of iOS 16's Best Features Drains Battery When Enabled

Thursday October 6, 2022 2:15 am PDT by
One of iOS 16's most praised features comes at the cost of draining battery life, according to recently published Apple support documents. The feature, known as "keyboard haptics," is optional in iOS 16 and allows users to get physical feedback via slight vibrations upon the touch of each key, confirming that it was pressed much like keyboard sounds. The feature is a useful addition to the...
aapl logo banner

No October Apple Event Expected Despite Upcoming Wave of New Devices

Wednesday October 5, 2022 2:33 am PDT by
Apple is no longer expected to host an event this month, despite plans to unveil a host of new devices including new iPad and Mac models, according to recent reports. In recent months, Apple has been expected to hold an event in October to announce a range of products that did not receive any stage time during the company's iPhone 14 unveiling event last month. In a recent newsletter, Bloombe...
iOS 16

Apple Preparing iOS 16.0.3 With More Bug Fixes Following iPhone 14 Launch

Monday October 3, 2022 7:53 am PDT by
iOS 16.0.2 was released last month with several bug fixes for iPhone 14 issues, excessive copy and paste permission prompts, and more. Now, evidence suggests that Apple is planning to release iOS 16.0.3 with additional bug fixes. Evidence of an upcoming iOS 16.0.3 software update has shown up in MacRumors analytics logs, which have been a reliable indicator in the past. There are several...
iOS 16

Apple Seeds New Betas of iOS 16.1 and iPadOS 16.1 to Developers [Update: Public Beta Available]

Tuesday October 4, 2022 10:06 am PDT by
Apple today seeded the fourth beta of iOS 16.1 to developers for testing purposes, with the beta coming one week after the release of the third iOS 16.1 beta. The iOS 16.1 beta is also joined by the fifth beta of iPadOS 16.1, which is on a slightly different schedule as Apple started testing it prior to the launch of iOS 16. Registered developers can download the iOS 16‌ and iPadOS 16...
dynamic island outline 1

iOS 16.1 Beta Adds More Pronounced Gray Border Around Dynamic Island When Using Black Wallpapers or in Dark Mode

Tuesday October 4, 2022 11:58 am PDT by
With the latest iOS 16.1 beta, Apple has tweaked the design of the Dynamic Island on the iPhone 14 Pro and Pro Max to make it more visible on a dark background. When using a darker wallpaper or with the darker interface of Dark Mode activated, there is a light gray border around the outside of the Dynamic Island when the screen is dimmed or when the Dynamic Island is in active use. The...