Facebook says Apple's new privacy rules could spare its own apps but hit smaller companies

- Facebook Inc on Wednesday warned that privacy changes coming from Apple Inc could hurt smaller developers such as gaming companies disproportionately but will likely leave its own apps mostly unscathed.

The changes come ahead of Apples new rules, which require increased user notifications for ad tracking and will take effect when new iPhones arrive this fall.

Facebook said it was considering discontinuing on iPhones a tool called Audience Network, which thousands of developers put into their apps to serve ads.

Facebook collects data about users from the apps where it serves those ads, which it uses to inform highly tailored targeting throughout its business.

The Audience Network business, while an important source of revenue and traffic to small developers such as gaming companies, is far from Facebooks biggest business, said Brian Wieser, global president of business intelligence at GroupM.

Apple previously provided a tool called the identifier for advertisers, or IDFA, that allowed Facebook and others to engage in such tracking of users across apps.

As an alternative to the tracking tools it previously provided advertisers, Apple created a new advertising network technology that was better for privacy protection of users.

Facebook on Wednesday said it would stop using Apples older tracking tools in its own apps and adopt Apples new offering, though it said Apples new technology limits the data available to businesses for running and measuring campaigns.

The changes Facebook announced Wednesday will fall hardest on ads that prompt users to install new mobile apps, a format that is heavily used in the video game industry.

Many rely on what is known as first-party data, such as which stories a user reads, to determine which ads to show, an activity which is not subject to Apples new rules.

Original article