Factbox-How Apple’s privacy changes are affecting companies

FILE PHOTO: Apple logo at an Apple store in Paris
FILE PHOTO: An Apple logo is pictured in an Apple store in Paris, France September 17, 2021. REUTERS/Gonzalo Fuentes/File Photo

November 8, 2021

(Reuters) – A privacy update rolled out by Apple Inc in April for its iPhones has sparked uproar from major social-media companies such as Meta Platforms Inc and Snap Inc, which have warned of a prolonged hit from the changes.

The update to Apple’s operating system prevents advertisers from tracking iPhone and iPad users without their consent.

Meta-owned Facebook has said the change would hurt small businesses because it would impede their ability to cost-effectively find local customers to target with advertisements.

Below is a list of companies that have been hit by the recent changes.

COMPANY COMMENT

REVENUE

Meta Warned that Apple’s new privacy

Platforms Inc changes would weigh on its digital Q3 miss

business in the current quarter.

Earlier in December, Meta accused

Apple of engaging in anticompetitive

practices.

Snap Inc Snap Chief Executive Evan Spiegel

said Apple’s privacy changes have Q3 miss

been a “frustrating setback” for the

company. Expects the impact to

linger through the fourth quarter.

Peloton Executives said company was seeing

Interactive some “disruptive impact” from Q1 miss

Inc Apple’s privacy changes, making it

harder for Peloton to efficiently

acquire customers.

Twitter Inc Said it saw a “modest” impact to ad

revenue due to the privacy changes. Q3

Added that it was too early to in-line

assess long-term impact.

Zynga Inc Said adoption of Apple’s privacy

changes resulted in a higher cost to Q2 miss

acquire new players. (reports

Expects short-term pressure on Q3 on Nov

advertising revenue and bookings to 8)

be more pronounced in the third

quarter.

Poshmark Inc Chief Executive Officer Manish

Chandra told Reuters the company Q2 beat

felt the impact of Apple’s new (reports

policy late in the second quarter Q3 on Nov

and expects it to continue into the 9)

current quarter.

(Reporting by Tiyashi Datta in Bengaluru; Editing by Aditya Soni)