Apple is following through on its pledge to crack down on Facebook and other snoopy apps that secretly shadow people on their iPhones in order to target more advertising at users.
The new privacy feature, dubbed “App Tracking Transparency,” rolled out Monday as part of an update to the operating system powering the iPhone and iPad. The anti-tracking shield included in iOS 14.5 arrives after a seven-month delay during which Apple and Facebook attacked each other’s business models and motives for decisions that affect billions of people around the world.
“What this feud demonstrates more than anything is that Facebook and Apple have tremendous gatekeeping powers over the market,” said Elizabeth Renieris, founding director of the Technology Ethics Lab at the University of Notre Dame.
But Apple says it is just looking out for the best interests of the more than 1 billion people currently using iPhones.
“Now is a good time to bring this out, both because of because of the increasing amount of data they have on their devices, and their sensitivity (about the privacy risks) is increasing, too,” Erik Neuenschwander, Apple’s chief privacy engineer, told The Associated Press in an interview.
Once the software update is installed — something most iPhone users do — even existing apps already on the device will be required to ask and receive consent to track online activities. That’s a shift Facebook fiercely resisted, most prominently in a series of full-page newspaper ads blasting Apple.
Until now, Facebook and other apps have been able to automatically conduct their surveillance on iPhones unless users took the time and trouble to go into their settings to prevent it — a process that few people bother to navigate.
“This is an important step toward consumers getting the transparency and the controls they have clearly been looking for,” said Daniel Barber, CEO of DataGrail, a firm that helps companies manage personal privacy.
In its attacks on Apple’s anti-tracking controls, Facebook blasted the move as an abuse of power designed to force more apps to charge for their services instead of relying on ads. Apple takes a 15% to 30% cut on most payments processed through an iPhone app.
Online tracking has long helped Facebook and thousands of other apps accumulate information about their user’s interests and habits so they can show customized ads. Although Facebook executives initially acknowledged Apple’s changes would probably reduce its revenue by billions of dollars annually, the social networking company has framed most of its public criticism as a defense of small businesses that rely on online ads to stay alive.
Apple, in turn, has pilloried Facebook and other apps for prying so deeply into people’s lives that it has created a societal crisis.
In a speech given a few weeks after the Jan. 6 attacks on the U.S. Capitol, Apple CEO Tim Cook pointed out how personal information collected through tracking by Facebook and other social media can sometimes push people toward more misinformation and hate speech as part of the efforts to show more ads.
“What are the consequences of not just tolerating but rewarding content that undermines public trust in life-saving vaccinations?” Cook asked. “What are the consequences of seeing thousands of users join extremist groups and then perpetuating an algorithm that recommends more?”
It’s part of Apple’s attempt to use the privacy issue to its competitive advantage, Barber said, a tactic he now expects more major brands to embrace if the new anti-tracking controls prove popular among most consumers.
In a change of tone, Facebook CEO Mark Zuckerberg recently suggested that Apple’s new privacy controls could actually help his company in the long run. His rationale: The inability to automatically track iPhone users may prod more companies to sell their products directly on Facebook and affiliated services such as Instagram if they can’t collect enough personal information to effectively target ads within their own apps.
“It’s possible that we may even be in a stronger position if Apple’s changes encourage more businesses to conduct more commerce on our platforms by making it harder for them to use their data in order to find the customers that would want to use their products outside of our platforms,” Zuckerberg said last month during a discussion held on the audio chat app Clubhouse.
In the same interview, Zuckerberg also asserted most people realize that advertising is a “time-tested model” that enables them to get more services for free or at extremely low prices.
“People get for the most part that if they are going to see ads, they want them to be relevant ads,” Zuckerberg said. He didn’t say whether he believes most iPhone users will consent to tracking in exchange for ads tailored to their interests.
Google also depends on personal information to fuel a digital ad network even bigger than Facebook’s, but it has said it would be able to adjust to the iPhone’s new privacy controls. Unlike Facebook, Google has close business ties with Apple. Google pays Apple an estimated $9 billion to $12 billion annually to be the preferred search engine on iPhone and iPad. That arrangement is currently one element of an antitrust case filed last year by the U.S. Justice Department.
Facebook is also defending itself against a federal antitrust lawsuit seeking to break the company apart. Meanwhile, Apple is being scrutinized by lawmakers and regulators around the world for the commissions it collects on purchases made through iPhone apps and its ability to shake up markets through new rules that are turning it into a de facto regulator.
“Even if Apple’s business model and side in this battle is more rights protective and better for consumer privacy, there is still a question of whether we want a large corporation like Apple effectively ‘legislating’ through the app store,” Renieris said.
SAN RAMON, Calif. (AP) — By MICHAEL LIEDTKE AP Technology Writer
Gains for some tech giants nudge S&P to another record high
Technology companies helped lift stocks higher on Wall Street, nudging the S&P 500 to its third straight all-time high, even as other parts of the market faltered.
A burst of buying in the final 10 minutes of trading sent the benchmark index 0.2% higher. The S&P 500 had been down 0.3% earlier amid another bout of choppy trading as Wall Street awaits the latest take from the Federal Reserve on inflation.
Investors are trying to gauge the strength of the economic recovery and whether emerging signs of inflation will be transitory, as the central bank believes. The Fed delivers its interest rate policy update Wednesday afternoon.
“Most of this is just positioning in front of the Fed later this week,” said Willie Delwiche, investment strategist at All Star Charts. Investors are “trying to get a sense of not just what the Fed is going to say in terms of announcements, but what they expect in terms of the path of monetary policy and the economy going forward.”
The S&P 500 added 7.71 points to 4,255.15. The index has notched a weekly gain three weeks in a row. The Dow Jones Industrial Average fell 85.85 points, or 0.2%, to 34,393.75. The Nasdaq rose 104.72 points, or 0.7%, to 14,174.14.
Small-company stocks fell. The Russell 2000 index lost 9.66 points, or 0.4%, to 2,326.15.
Among the tech sector winners Monday were Apple, which rose 2.5%, and Adobe, which gained 2.9%. Several large communications companies also made gains. Facebook rose 1.7% and Netflix gained 2.3%. Those gains offset a broad decline in financial, industrial and materials stocks, among others. JPMorgan dropped 1.7%.
Wall Street is trying to gauge the strength of the economic recovery, the impact rising inflation is having on its trajectory, and the Fed’s next move.
Investors have been worried that the Fed could ease up on bond purchases and other stimulus measures as the economy recovers. No policy changes are expected immediately, but comments on a shift in policy could jostle an already skittish market.
Fed officials have maintained that any rise in inflation will be temporary as the economy recovers.
“There’s still this debate on inflation and, notwithstanding what the Fed does and whether yields move down, there’s still some upward pricing pressure,” said Tom Martin, senior portfolio manager with Globalt Investments.
A boost in demand for goods has helped fuel a rise in the cost of everything from food to cars and household goods. Shipping costs are also rising and adding to the increase in prices. The uncertainty over inflation has been fueling much of the back-and-forth in the market between stocks that are considered safer value holdings versus those with more potential for sharp growth.
“As you go into the summer and you have uncertainty about inflation, the fed and the stimulus, you’ll kind of see people neutralizing bets,” Martin said.
Lordstown Motors sank 18.8% after the CEO and CFO resigned as problems mount for the startup electric truck maker.
Novavax gave up an early gain, dropping 0.9%. The vaccine maker said its COVID-19 shot was highly effective against the disease and also protected against variants in a large study in the U.S. and Mexico. The company is facing raw-material shortages, though, and plans to seek authorization for the shots by the end of September.
Bond prices fell, sending yields mostly higher. The yield on the 10-year Treasury note rose to 1.50% from 1.46% late Friday.
“You don’t get a message from the bond market that it’s worried either about persistent inflation or about the Fed doing something dramatic in terms of not being the buyer of bonds that it has been in recent quarters,” Delwiche said.
European markets were mostly higher. Several markets in Asia were closed for a holiday.
By DAMIAN J. TROISE and ALEX VEIGA AP Business Writers
Google Announces Google Workspace for Everyone
Google announced on Monday a series of updates that build upon its vision to deliver a single, integrated communication and collaboration solution to everyone via Google Workspace.
Now, all of the company’s three billion-plus existing users across consumer, enterprise, and education have access to the full Google Workspace experience, including Gmail, Chat, Calendar, Drive, Docs, Sheets, Meet and more.
In addition to offering Google Workspace to everyone, the company announced new innovations that address the specific challenges and opportunities of the hybrid work world:
- The evolution of Rooms in Google Chat to Spaces
- A new individual subscription offer: Google Workspace Individual
- New enhancements to Google Meet that enable collaboration equity
- New security and privacy capabilities across Google Workspace
“Collaboration doesn’t stop at the workplace – our products have been optimized for broad participation, sharing and helpfulness since the beginning,” said Javier Soltero, VP and GM, Google Workspace. “Our focus is on delivering consumers, workers, teachers and students alike an equitable approach to collaboration, while still providing flexibility that allows these different subsets of users to take their own approach to communication and collaboration.”
“With this update, Google Workspace is creating a new competitive advantage by optimizing for a single, connected experience across its products that it is extending to consumers and individual business owners, to align with the experience that its enterprise and education subscribers benefit from today,” Patrick Moorhead, principal analyst, Moor Insights & Strategy, said in a statement.
Google Workspace for everyone
Every day, the world’s most innovative companies, schools and nonprofits use Google Workspace to transform how people work and achieve more together.
It’s a daily part of how leading healthcare providers revolutionize patient care, schools turn remote learning into an immersive, personalized experience, and aerospace companies rethink flight. Starting today, Google Workspace is available to anyone with a Google account, meaning friends, family, or groups of any kind can stay connected, work together, and share helpful information in a single space.
For example, you can organize a junior sports league with ease, take that fundraiser to the next level, or even turn a hobby into a business. Starting today, users can enable the integrated experience in Google Workspace by turning on Google Chat in Gmail.
Connecting content and people in powerful ways
With the introduction of Spaces, the Rooms experience in Google Chat will evolve into a dedicated place for organizing people, topics, and projects in Google Workspace. “Over the summer, we’ll evolve Rooms to become Spaces and launch a streamlined and flexible user interface that helps teams and individuals stay on top of everything that’s important,” a statement by the search engine said.
Powered by new features like in-line topic threading, presence indicators, custom statuses, expressive reactions, and a collapsible view, Spaces will seamlessly integrate with files and tasks, becoming a new home in Google Workspace for getting more done—together.
Spaces will also provide a place to fuel knowledge sharing and community building for teams of all sizes, where all the relevant information, conversations, and files for a project can be organized, and where topics—even at the organization level—can be intelligently moderated.
With the ability to pin messages where everyone can see them, Spaces will play a crucial role in helping people stay connected and informed.
Google Workspace Individual
Google Workspace is also launching Workspace Individual, a powerful, easy-to-use solution that was built to help individual business owners grow, run, and protect their business. This new subscription offering provides premium capabilities, including smart booking services, professional video meetings and personalized email marketing, with much more on the way.
Within their existing Google account, subscribers can easily manage all their personal and professional commitments from one place with access to Google support to get the most out of their solution.
Workspace Individual is rolling out soon to six markets, including the United States, Canada, Mexico, Australia, Brazil, and Japan.
A single, connected experience
As businesses move to a hybrid work environment, the importance of creating secure collaboration spaces and fostering human connection has never been more important. Because Google Workspace was designed to fuel anywhere, anytime collaboration, it’s now helping millions of organizations navigate the challenges and opportunities of the newly emerging work model.
Customers are using Google Workspace to rethink virtual meetings, provide people with modern tools to stay connected and manage their time and attention, and double down on security and privacy.
Apple reaffirms privacy stance amid Trump probe revelations
Seeking to protect its image as a guardian of personal privacy, Apple maintains it was blindsided and handcuffed by a Trump administration probe that resulted in the company handing over phone data from two Democratic congressmen.
Apple delivered its version of events Friday in response to news reports detailing the U.S. Justice Department’s aggressive attempts to use its legal power to identify leaks tied to an investigation into former President Donald Trump’s ties to Russia.
The Justice Department was able to persuade a federal grand jury to issue a subpoena that culminated in Apple turning over the metadata — information that can include general records of calls and texts — about House Intelligence Committee members Adam Schiff and Eric Swalwell, both California Democrats, during 2018. Both lawmakers were key figures on the committee looking into Trump’s connections with Russia; Schiff is now the panel’s chair.
Neither Schiff and Swalwell knew some of the information had been seized until May 5, after a series of gag orders had finally expired, according to the company.
The revelation of Apple’s compliance with the subpoena emerged at a time when the company has been ramping up efforts to frame privacy as “fundamental human right” in its marketing campaigns. Apple also upped the privacy ante in April when it rolled out privacy controls on the iPhone as part of an effort to make it more difficult for companies such as Facebook to track people’s online activities to help sell ads.
In a statement, Apple emphasized it will continue to fight unjustified legal demands for personal information and keep customers informed about them.
But in this instance, Apple said it was constrained by a nondisclosure order signed by a federal magistrate judge and said it had no information about the nature of the investigation.
“It would have been virtually impossible for Apple to understand the intent of the desired information without digging through users’ accounts,” the Cupertino, California, company said. “Consistent with the request, Apple limited the information it provided to account subscriber information and did not provide any content such as emails or pictures.”
Apple also believes other technology companies may have been confronted with similar legal demands, based on the broad nature of the request it received for “customer or subscriber account information” spanning 73 phone numbers and 36 email addresses.
It remains unclear how many other companies may have been swept up in the Trump administration’s attempt to track down leakers.
In a statement, Microsoft acknowledged receiving at least one subpoena in 2017 related to a personal email account. It said it notified the customer after the gag order expired and learned that the person was a congressional staff member. “We will continue to aggressively seek reform that imposes reasonable limits on government secrecy in cases like this,” the company said.
Privacy experts were more troubled by the U.S. laws that allowed the Justice Department to secretly obtain the subpoenas and then keep them under wraps for years than by Apple’s limited compliance with the demands.
The subpoenas represent a “a quintessential example of government abuse” that ensnared Apple, said Alan Butler, executive director of the Electronic Privacy Information Center.
“It’s very difficult to challenge these types of subpoenas, but it’s not impossible,” Butler said. “And if there ever was one worth challenging, it might have been these.”
Apple’s response to the subpoena doesn’t necessarily contradict its stance on the sanctity of personal privacy, said Cindy Cohn, executive director for the Electronic Frontier Foundation, a digital rights group. That’s because Apple privacy commitments mostly revolve around shielding its customers from online surveillance.
She thinks the bigger issue is why U.S. law allows a grand jury to issue a subpoena and then block Apple from alerting the affected people.
“The overall secrecy of this is troubling, especially since it appears to have all been a politically motivated investigation,” Cohn said.
Apple has a history of fighting legal requests, most notably in 2016 when the Justice Department sought to force Apple to unlock the iPhone owned by one of the killers in a mass shooting in San Bernardino, California.
Apple refused to cooperate, contending it would open a digital backdoor that would pose threats to the security and privacy of all iPhone users. The legal showdown ended when the FBI hired another firm to unlock the iPhone connected to the shooting.
“Apple really put its money where its mouth is that time,” Butler said.
SAN RAMON, Calif. (AP) — By MICHAEL LIEDTKE AP Technology Writer.
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