Facebook Battles Apple Over User Privacy

Abstract

Apple’s latest iPhone update includes a new feature that explicitly asks users to consent to or opt out of data tracking, which most apps employ to survey consumer usage habits and to generate revenue from targeted ads. Apple’s decision has incited a very vocal reaction from tech giant Facebook, which claims that data tracking (and data-driven targeted ads) helps support small business and keeps the app free. As Big Tech continues to wrestle with growing concerns over user privacy and surveillance, this case asks students to examine the ethics and strategy of Apple’s latest feature.

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

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