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Facebook to iPhone Users: When You Accept Data Tracking, a Small Business Gets Its Wings

As Apple rolls out alerts inside iOS 14 that require people to opt in to app-based data tracking, Facebook preps its own alerts, which extol the benefits of personalized ads.

 & Michael Kan Principal Reporter

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Apple's iOS 14 will soon require every third-party app to ask your permission to track your web activities in order to serve tailored ads. It’s a change that’s expected to cause millions of iPhone owners to opt out of the data tracking. But guess who wants to convince you to opt in? 

On Monday, Facebook said it's working on a new notification for iOS 14 devices that’ll highlight the benefits of the data tracking—a major way the social network generates funding.

“To help people make a more informed decision, we’re also showing a screen of our own, along with Apple’s. It will provide more information about how we use personalized ads, which support small businesses and keep apps free,” the company said. 

Facebook plans on debuting the notifications alongside the iOS 14 privacy alerts, which will let you decide to opt into an app’s data tracking or opt out. “If you accept the prompts for Facebook and Instagram, the ads you see on those apps won’t change. If you decline, you will still see ads, but they will be less relevant to you,” the social network said. 

Facebook decided to create the notifications, citing how the upcoming privacy alerts on iOS 14 say nothing about the benefits of personalized ads. As a result, the company fears that many iPhone owners will block the data-collection efforts. 

According to Facebook, the big loser will be small businesses that rely on the social network to serve targeted ads to reach interested customers. “In testing we’ve seen publishers experience more than a 50% drop in revenue when personalization was removed from mobile app ad install campaigns,” Facebook said in December. Free mobile apps that rely on online advertising also risk seeing their funds dry up.  

The other loser is Facebook itself; without the precise ad targeting, businesses may decide to skip the social network’s marketing products for other competing services.  

Facebook is framing the whole issue as bad for the free internet. However, the company neglects to mention its notorious record on mishandling users' data, which has caused trust in the social network to plummet. Last week, Apple CEO Tim Cook also condemned companies like Facebook for infringing on people’s privacy while radicalizing users with extreme content.   

“Technology does not need vast troves of personal data, stitched together across dozens of websites and apps, in order to succeed,” Cook said in a speech. “Advertising existed and thrived for decades without it.”

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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