Tim Cook, CEO of Apple Inc. (AAPL), recently sent a letter to influential members of Congress in which he said, “Apple continues to support efforts.
At the federal level to provide robust privacy safeguards for customers, and we are pleased by the draught ideas your offices have generated.” Cook said, “The common ground seems to exceed the differences by a wide margin.”
The American Data Privacy and Protection Act, which Cook wrote, is a new piece of proposed legislation. It was submitted to the chairs of the House Energy and Commerce Committee and the Senate Commerce, Science, and Transportation Committee, respectively, Maria Cantwell (D-Wash.) and Frank Pallone (D-N.J.).
Due to the law, several of the most successful U.S. technology businesses might see significant changes to their business models and bottom lines.
The United States Federal Privacy Act:
In the current version of the American Data Privacy and Protection Act, the Federal Trade.
Commission has jurisdiction over any business that collects, processes, or transmits “covered data” (FTC). Information that “identifies, connects, or is reasonably linkable to a person or device” comes under the definition of “covered data.”
According to the proposed changes, it is forbidden for covered organizations to “unnecessarily” utilize or acquire such information. The proposed law places emphasis on targeted marketing.
Advertisements that are specifically catered to the intended audience
Targeted advertising is described in the proposals as “displaying to an individual or unique identifier an online advertisement that is chosen based on knowns and assumptions derived from the data obtain”
To avoid being subject to target advertising, people would need to be given “clear and prominent ways” to opt out, which the cover businesses would provide. If a user is under 17, they cannot be subjected to age-based targeting.
Contradictory Effects on the Tech Giants:
Companies in the internet industry, like Facebook’s parent company Meta Platforms Inc. (META) and Google’s parent company Alphabet Inc. (GOOGL, GOOG), rely substantially on advertising income, particularly targeted advertising.
Because of this, they may see a severe danger to their business models and income sources should the policies outline in this draught become law. Advertisers often perceive non-target advertisements as less successful and valuable, so if many users opt out of focuse advertising, it might lead to lower advertising income for these firms.
Meanwhile, Apple has positioned itself as the most privacy-focused large technology business, with CEO Tim Cook putting a premium on this problem.
Apple’s statement calls privacy “a basic human right,” indicating that the company’s dedication to protecting users’ personal.
Meanwhile, Apple’s App Tracking Transparency feature allows users to choose.
whether or not an app may monitor their activities across other applications and websites.
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