Alibaba ‘Fretting’ Over iOS 14.5’s App Tracking Transparency

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Apple released iOS 14.5 to the general public a few days ago. iOS 14.5 update finally introduced App Tracking Transparency which limits advertisers and developers from showing personalized or targeted ads to the user. Reports say Chinese e-commerce giant Alibaba recently held a meeting to discuss the implications of App Tracking on its revenue.

App Tracking Transparency in iOS 14.5 prevents advertisers and developers from tracking a user’s app usage and thus limiting them from showing personalized ads to the user. Many advertisers have feared that this would lower their revenue ‘many folds.’

Facebook, earlier speculated that ATT would change the internet for the worse, but now has reported that ATT will have a ‘manageable impact on its ad business.

The Information has now reported that the Chinese tech giant Alibaba has been pondering over the implications of ATT on its revenue. As per the publication, Alibaba held an internal meeting where the executives ‘explored solutions’ to ATT. However, sources familiar with the matter said that there was “no clear consensus” was reached after the meeting.

Alibaba, currently, makes more than $30 billion in revenue from small merchants and advertising agencies that pay the e-commerce tech giant to advertise their products. This $30 billion revenue makes about 40% of Alibaba’s total revenue, and the company is now worried about this number going down.

China has been known to be working on a tool to bypass iOS 14.5’s App Tracking Transparency. The bypass tool, known as CAID, could allow developers and advertisers to track app usage without user consent. Tech companies like ByteDance are already conducting tests. Apparently, Apple knows about the CAID tool, although it hasn’t made any comments to the Chinese government.

If you are unclear what App Tracking Transparency is, read our explainer on what App Tracking Transparency in iOS 14.5 is and how it will protect your privacy.

[Via The Information]