With the latest updates to its mobile operating systems, Apple wants to better protect its users' data and provide them with simple control mechanisms for the further processing of their personal data. To the delight of many users and to the annoyance of large online companies.

The focus here is on tracking, i.e. the collection of user data across websites or apps. A flood of information can be collected and merged into profiles, which in turn enable targeted advertising. A lot of money can be made from this and trading in user data is an extremely profitable business.

Apple is increasingly putting a stop to this: from an update to the iOS 14.5 operating system, users can decide for themselves whether apps are allowed to track them for marketing and advertising purposes. Since then, apps must ask the user whether they consent to tracking. In the settings, rules can be defined and managed individually for different apps, or tracking can be deactivated in general - in which case every request from an app is automatically rejected.

Companies and the advertising industry in turmoil

It is to be expected that only a few users will actively decide to release their data and will also go to the trouble of creating individual rules for certain applications in their iPhone's privacy settings. It is much more likely that they will simply block tracking completely. And in view of the loss of revenue, Apple's strategy is quickly criticized. There is talk of unfair competition. Apple wants to squeeze free apps and apps financed by advertising out of the market, leaving users with only paid apps from which Apple earns money through the App Store. In addition, associations criticize the fact that Apple itself continues to collect user data, while competitors are prevented from processing user data commercially. As a result of this development, eight media and advertising industry associations in Germany have filed a complaint with the Federal Cartel Office and proceedings have already been initiated.

Data protection as a key issue

Apple refutes the accusations and is unimpressed by the strong headwind. "At Apple, we believe that privacy is a fundamental right," announced software developer Craig Federighi on June 7, 2021 at WWDC21, the World Wide Developers Conference. Similar wording can be found on the company's website, which refers to data protection as a "core value".

But where does Apple's demonstrative love of data protection come from? Critics see further financial interests in addition to the potential revenue from the App Store. After all, Apple's business is the sale of high-priced hardware and the message to users of mobile devices is more than clear: your data is protected from unauthorized access on our devices. In times of increasing security awareness, this could persuade many users who previously found Apple's hardware too expensive to pay the premium prices of the Cupertino-based company in future. Especially as Apple's far cheaper competitors are still lagging behind in this respect and have so far shown little interest in proactively focusing on the issue of data protection. Although new data protection measures are also to be implemented on Android by the end of the year, users will have to actively object to tracking by opting out, which is expected to result in far lower rejection rates than with an opt-in.

Data protection as a fundamental right - but for everyone?

The more or less self-contained system has always been generally perceived as secure; only applications that have been tested and certified by Apple can be installed via the App Store. Viruses and malware attacks were not an issue for Apple operating systems for a long time. And so anyone who attached particular importance to security relied on the products from Cupertino.

But the myth of the safe Apple is also beginning to crumble and Apple's credibility is increasingly under scrutiny. According to research by the New York Times, Apple is said to have compromised on the protection of Chinese users' data. China is not only a huge market for Apple, but also its most important manufacturing partner. Certain dependencies cannot be denied and the Chinese leadership is increasingly making demands. For example, servers with user data should be under the control of Chinese companies, modern encryption technologies should not be used and unwelcome applications in the App Store should be censored.

Apple responds to such accusations by stating that it complies with the laws in force in China and does everything in its power to protect user data.

New distribution of power?

For users in this country, this should only spoil the joy of the new data protection features to a limited extent. And for Apple, the increased focus on data protection could well pay off. Competitor Android currently dominates the market, but could lose users if similar solutions do not follow soon. And due to the close link between Android and Google services, stricter data protection guidelines would probably go hand in hand with a cannibalization of Apple's own revenue through personalized advertising. Not exactly a great incentive for those responsible to become active quickly. And so Apple's new love of data protection could well have an impact on the balance of power in the mobile market.