The Privacy Showdown: Tim Cook vs. Mark Zuckerberg

The fight over consumer  privacy 

“In this corner, from Cupertino California, wearing the simple yet elegant black trunks with white trim, the Defending Design Champion of the World…Apple.”

“And in this corner, hailing from Menlo Park California, rocking the advertisement-covered trunks, the Social Media Greatest of All Time…Facebook.”

 — Well into the match — 

“Apple’s Tim Cook is beating Zuck to a bloody pulp with an iPhone Pro Max. This could soon be over! Wait, something is happening, it appears Zuckerburg has assumed control over Cook’s body, now he’s pummeling himself.” 

That’s how I imagine a Celebrity Deathmatch episode featuring tech CEOs Tim Cook and Mark Zuckerburg. If you have no idea what I’m talking about, Celebrity Deathmatch was a controversial claymation show that aired in the late 90s and early 00s. Each episode pit two celebrities against each other in a gory fight to the death. 

The show was discontinued long ago, but we’re in the midst of a showdown between Apple and Facebook. Until recently, the two giants largely stayed out of each other’s way, opting to let the rising tide of tech lift both ships. But the days of peaceful coexistence may be ending, and the gloves coming off for a long-awaited episode of Corporate Deathmatch!

Three billion dollars is the combined value of Apple and Facebook. That’s more than the GDP of 37 countries, according to the United Nations (2019). And if you haven't heard, Apple brought user privacy to the forefront with their latest iOS update. The update prompts users to choose to allow or deny tracking for advertising on an app-by-app basis. This isn’t a new option, Apple previously tucked it away in the settings, but the move is a haymaker in the direction of Zuckerburg. Allowing users to decide to allow ad-related tracking seems reasonable, but not everyone agrees.

Apple’s Take:

Privacy has taken center stage in the big-tech showdown with consumers. For many tech companies, the user is the product. User data is becoming increasingly valuable as companies jockey for positions in the digital age. Apple CEO Tim Cook made privacy a top priority in recent months, saying “right now, users may not know whether the apps they use to pass the time, to check in with their friends, or to find a place to eat, may, in fact, be passing on information about the photos they’ve taken, the people in their contact list, or location data that reflects where they eat, sleep or pray.” Apple is aiming to ease these concerns with the changes to its operating system.

Facebook’s Take:

It’s no secret that data is Facebook’s cash chow, and they’re doing everything they can to ensure users continue feeding them. Targeted ads account for nearly $86 billion in annual revenue, but Facebook says collecting data is about creating a better user experience. Whether you believe that or not, Zuckerberg is punching back at Apple.

During Facebook’s fourth-quarter earnings call, Zuckerberg hurled a haymaker of his own, saying, “Apple may say that they’re doing this to help people, but the moves clearly track their competitive interests.” A Facebook spokeswoman echoed that, telling the Guardian, “Apple’s new prompt is designed to present a false trade-off between personalized ads and privacy; when in fact we can provide both.”

What’s Next?

Is Apple genuinely concerned about privacy? Or are they protecting their influence on how competitors interact with iPhone users? Is Facebook interested in providing the best experience? Or are they ensuring their cash cow keeps getting fatter?

As the physical and digital worlds clash, privacy becomes a larger battleground. Consumers demand online security, but companies want more information about their customers. 

Apple and Facebook are just two gladiators in this fight. Companies like Google, Amazon, and Microsoft will be called off the bench, and governments will chime in as constituents continue to apply pressure. I expect more states to adopt online privacy laws and the federal government to take action eventually. 

While some business leaders are racing to earn goodwill for acting without being told, some will choose to duke it out. Unlike Celebrity Deathmatch, there won’t be a clear winner or loser. Instead, we might be entering an era where corporations are more thoughtful in handling consumer data. Either way, the results will have far-reaching consequences, from consumer satisfaction to corporate profits, and we’ll be watching closely.

*This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. I encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from James Vermillion, and all rights are reserved.*