(privacy is in the eye of the beholder ... and the platform provider.  --rick)

Apple reaches quiet truce over iPhone privacy changes
Patrick McGee 3 hours ago
5-6 minutes
https://www.ft.com/content/69396795-f6e1-4624-95d8-121e4e5d7839

Group’s unacknowledged shift lets companies follow a looser interpretation of 
its privacy rules
A person is reflected in an Apple logo on the side of a building

Apple has allowed app developers to collect data from its 1bn iPhone users for 
targeted advertising, in an unacknowledged shift that lets companies follow a 
much looser interpretation of its controversial privacy policy.

In May Apple communicated its privacy changes to the wider public, launching an 
advert that featured a harassed man whose daily activities were closely 
monitored by an ever-growing group of strangers. When his iPhone prompted him 
to “Ask App Not to Track”, he clicked it and they vanished. Apple’s message to 
potential customers was clear — if you choose an iPhone, you are choosing 
privacy.

But seven months later, companies including Snap and Facebook have been allowed 
to keep sharing user-level signals from iPhones, as long as that data is 
anonymised and aggregated rather than tied to specific user profiles.

For instance Snap has told investors that it plans to share data from its 306m 
users — including those who ask Snap “not to track” — so advertisers can gain 
“a more complete, real-time view” on how ad campaigns are working. Any 
personally identifiable data will first be obfuscated and aggregated.

Similarly, Facebook operations chief Sheryl Sandberg said the social media 
group was engaged in a “multiyear effort” to rebuild ad infrastructure “using 
more aggregate or anonymised data”.

These companies point out that Apple has told developers they “may not derive 
data from a device for the purpose of uniquely identifying it”. This means they 
can observe “signals” from an iPhone at a group level, enabling ads that can 
still be tailored to “cohorts” aligning with certain behaviour but not 
associated with unique IDs.

This type of tracking is becoming the norm. Oren Kaniel, the chief executive of 
AppsFlyer, a mobile attribution platform that works with app developers, said 
that when his company introduced such a “privacy-centric” tool based on 
aggregated measurement in July 2020, “the level of pushback that we received 
from the entire ecosystem was huge”.

But now such aggregated solutions are the default for 95 per cent of his 
clients. “The market changed their minds in a radical way,” he said.

It is not clear whether Apple has actually blessed these solutions. Apple 
declined to answer specific questions for this article but described privacy as 
its North Star, implying it was setting a general destination rather than 
defining a narrow pathway for developers.

Cory Munchbach, chief operating officer at customer data platform BlueConic, 
said Apple had to stand back from a strict reading of its rules because the 
disruption to the mobile ads ecosystem would be too great.

“Apple can’t put themselves in a situation where they are basically gutting 
their top-performing apps from a user-consumption perspective,” she said. “That 
would ultimately hurt iOS.”

For anyone interpreting Apple’s rules strictly, these solutions break the 
privacy rules set out to iOS users.

Lockdown Privacy, an app that blocks ad trackers, has called Apple’s policy 
“functionally useless in stopping third-party tracking”. It performed a variety 
of tests on top apps and observed that personal data and device information is 
still “being sent to trackers in almost all cases”.

But the companies aggregating user-level data said the reason apps continue to 
“leak” information such as a user’s IP address and location was simply because 
some require such information to function. Advertisers must know certain things 
such as the user’s language or the device screen size, otherwise the app 
experience would be awful.

The risk is that by allowing user-level data to be used by opaque third parties 
so long as they promise not to abuse it, Apple is in effect trusting the very 
same groups that chief executive Tim Cook has lambasted as “hucksters just 
looking to make a quick buck”.

Companies will pledge that they only look at user-level data once it has been 
anonymised, but without access to the data or algorithms working behind the 
scenes, users won’t really know if their data privacy has been preserved, said 
Munchbach.

“If historical precedent in adtech holds, those black boxes hide a lot of 
sins,” she said. “It’s not unreasonable to assume it leaves a lot to be 
desired.”

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