Alibaba (NYSE: BABA), Apple Inc. (NASDAQ: AAPL) – Not just Facebook, Alibaba is also concerned about the impact of Apple’s new privacy rules on businesses
What happened: Alibaba invited half a dozen marketing executives last week to discuss how the company can protect its revenue after the introduction of app tracking transparency on iOS, according to the report.
Changes to privacy rules will result in mandatory user permission to display targeted ads. The changes to privacy rules will give users more privacy from mobile advertising, but they are unpopular with app developers, many of whom are small businesses.
See also: The ant problems are not over? Jack Ma’s dealings with regulators reportedly come under scrutiny from Beijing
Why is this important: The company co-founded by Jack Ma is worried about whether Apple’s new privacy rules will negatively impact its advertising business, which accounts for 40% of its total revenue. There are over 300 million active iPhone users in the country.
Alibaba is already grappling with regulatory issues in China and was fined a record $ 2.8 billion earlier this month for abusing its position as the dominant manufacturer in the country. The company’s popular UC internet browser was also removed by several internet companies from their app stores in China in March.
Alibaba isn’t the only company concerned about the impact of Apple’s privacy policies on its business. Facebook Inc. (NASDAQ: FB), second largest ad revenue recipient after Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL), sharply criticized Apple’s privacy updates for months, saying the changes would hurt its business and also small businesses.
Facebook on Wednesday warned that Apple’s recently released iOS14.5 update is expected to impact the social media giant’s revenue in the coming quarters.
It was reported in March that five of China’s biggest tech companies, including Baidu Inc. (NASDAQ: BIDU), Tencent Holdings Ltd. (OTC: TECHY) and ByteDance, are testing several workarounds for Apple’s new privacy feature to continue tracking users without their permission. However, Apple has warned Chinese companies not to circumvent its new privacy rules.
Price action: Alibaba shares closed almost 1.1% lower Thursday at $ 234.18.
Read more: After Alibaba, Tencent Expected to Face Antitrust Fine in China: Report
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.