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Facebook Rises as Zuckerberg Says Apple Update Could Benefit Firm

Mark Zuckerberg has had a change of heart about the privacy changes expected with Apple's upcoming update to iOS.

Facebook  (FB) - Get Meta Platforms Inc. Report CEO Mark Zuckerberg is now more optimistic that his company will be able to navigate the app tracking privacy changes that will come with the Apple  (AAPL) - Get Apple Inc. Report iOS 14 update that is expected to come out early next year.

The head of the Menlo Park, Calif., company said on a Clubhouse video chat on Thursday that Facebook may actually find the changes beneficial as it delves into allowing businesses to sell goods directly through Facebook and Instagram, CNBC reports.

“The reality is that I’m confident that we’re gonna be able to manage through that situation well and we’ll be in a good position,” Zuckerberg said on the chat.

At last check, Facebook shares were trading 4.25% higher at $290.47, while Apple shares were up 0.32% to $120.92.

There have been many concerns about the App Tracking Transparency tool that will be included in the iOS 14 update. The tool would require users to opt in to allowing companies to track them across other apps and websites. 

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Companies like Facebook that rely on ads for revenue have expressed concern that this feature will hinder their ability to collect data from users to generate personalized ads and track how well their ads are performing.

However, Facebook has made efforts to prepare its platform for the changes. The company established Facebook Shops and Instagram Shops in 2020, which allows brands to showcase and sell products directly within the popular platforms.

Zuckerberg said Facebook Shops has already amassed one million online storefronts and 250 million customers.

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“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,” he said on the video chat.

Previously, Zuckerberg had strongly criticized Apple, saying the Cupertino, Calif., tech giant was “only concerned with protecting its own profits." He said that the changes could reduce Facebook's Audience Network ad business by more than 50%, and also said the changes could hurt smaller third-party businesses.

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