Business model

Google is planning a privacy change that could once again boost Facebook’s business model

Google is set to make changes to its Android operating system that aim to reduce the amount of tracking it allows. It’s this kind of tracking that allows big tech companies to gather consumer insights and, in turn, ruthlessly target you with ads for things they think you want to buy.

Google’s changes aim to limit the sharing of user data with third parties by limiting the amount of data collected in different applications.

The changes are similar to those introduced by Apple. In fact, Apple’s changes have led Facebook’s recently renamed parent company, Meta (opens in a new tab) state that Apple’s changes alone would cost the company $10 billion in revenue. On the same day, $232 billion was wiped off the company’s market capitalization. That’s a drop of 26 percent! And it set a new record for the biggest one-day loss in history. Sucks to be Zuck.

However, despite the market capitalization massacre, Facebook isn’t as aggressive with Google’s changes as it was with Apple’s. “[It is] encouraging to see this long-term, collaborative approach to privacy-protecting personalized advertising from Google,” said Graham Mudd, vice president of product marketing, ads and business at Facebook on Twitter. “We look forward to continuing to work with them and industry on privacy technologies through industry groups. »

Facebook’s softer response this time around is likely due to Google taking its time rolling out the policy changes and not actually disclosing a timeline. He also said existing technologies will last at least two years, giving companies time to adapt. (or is it escapism?) Meta also recently partnered with Nvidia to create an incredibly powerful AI research supercomputer (opens in a new tab)so maybe he just doesn’t need that data anymore, anyway.

It’s not just big tech that’s affected by these kinds of policy shifts. Ad revenue is the lifeblood of many websites (including ours) and there needs to be a healthy balance between consistently aggressive and invasive tracking while allowing businesses that rely on ad revenue to survive and thrive. These kinds of discussions will only intensify as we move more and more from the real to the virtual world.