Apple rolls out iOS 14.5 with 'app tracking transparency' privacy feature

Users will have to opt in if they want their online activities to be tracked by an app

Technology giant Apple announced on Monday that it has started rolling out iOS 14.5 and iPadOS 14.5 update, bringing several new features and improvements for iPhone and iPads users.

The company said that users can now use the App Tracking Transparency function that "requires apps to get the user's permission before tracking their data across apps or websites owned by other companies for advertising, or sharing their data with data brokers."

Apps that want access to a user's unique ID number will prompt them with the message - "Allow [app] to track your activity across other companies' apps and websites?"

Users will have to opt in if they want their online activities to be tracked by the app.

If the user declines the request, the app will not be able to access the user ID required to track users' online activity.

Users will also be able to see which apps have requested permission to track "so they can make changes to their choice at any time."

While apps may be able to use "fingerprinting" technique to achieve the same goal, Apple has warned that doing so could result in their expulsion from the App Store.

Apple first announced its plans to update its iOS privacy settings in June last year, stating that the app tracking transparency feature will require users to give explicit permissions for apps to collect data about them.

The announcement led to immediate pushback from the wider advertising industry, including Facebook that placed full-page ads in several US newspapers in December 2020, criticising the iPhone maker for the decision.

Facebook argued that Apple's new privacy changes would be devastating to small businesses that rely on targeted ads and that the changes would curb the ability of businesses to reach their customers effectively.

"Without personalised ads, Facebook data shows that the average small business advertiser stands to see a cut of over 60 per cent in their sales for every dollar they spend," Facebook added.

In a conference call, Dan Levy, head of Facebook's small business programme, said that Apple privacy rules are "about profit, not privacy". He also accused Apple of behaving anti-competitively by using its App Store in a way that benefits its bottom line at the expense of small businesses and developers.

Levy also reassured investors that the company would not be severely affected by Apple's move.

Apple's update of its privacy settings was originally supposed to take effect with the release of iOS 14 last year, but the company decided to delay the changes for a few more months to give the industry time to prepare.

Last year, a group of Germany's biggest media, advertising and technology companies, filed a complaint with the antitrust regulator in the company, arguing that Apple's new privacy feature could lead to a 60 per cent decrease in advertising revenues for app developers.

But, in France, consumer group Noyb filed an almost opposite complaint with the country's privacy watchdog, arguing that Apple should roll out the new privacy feature immediately and should also remove the ID for advertisers.

Apple said in December that it was "standing up" for the people who use its devices.

Alongside the new privacy feature released on Monday, iOS 14.5 also brings an important feature that enables iPhone users to unlock their phones with the Apple Watch, without requiring a Face ID or passcode.

The new update also includes support for Apple's lost-key-tracking device AirTag and support for PlayStation 5 and Xbox Series X/S on iPad and iPhone, ability to watch Apple Fitness Plus workouts on a TV with AirPlay 2, and many new emojis, among other features.