Snap is facing charges from one of its affiliates for exaggerating how they would react to Apple’s secret updates that were released earlier this year, Reuters reports.
According to one comparison, the iOS version cost Snap, Facebook, Twitter, and YouTube $ 9.85 billion in revenue lost in the second half of 2021.
Snap, whose main source of revenue is digital marketing for its popular digital images and videos, has been one of the most challenging. Industrial sales is down about 25% last month following indifferent third quarter earnings report, which he says was possible due to the collapse of Apple’s privacy updates.
The lawsuit, filed in a U.S. district court case in Central District of California, alleges that Snap violates state security laws. As noted in the letters, Snap business manager Jeremi Gorman expressed confidence in investors. back in February of changing the Snap business model to match the upcoming Apple policy changes.
“Everywhere you look today, the tide of protectionist sentiment is flowing,” he said.
In a bid for refunds in July, Gorman disclosed a number of new advertising secrets that Snap introduced in preparation for Apple’s privacy updates, such as Advanced Conversions, which uses cryptographic tech to measure changes without identifying users.
Black, Investor back in the case, says Gorman spoke a lot of “false and / or misleading” comments during this time to better explain the consequences of Apple’s new policy when the damage was starting to show. The suit states that “Snap expanded its ability to adapt its advertising and Apple’s privacy changes” and “recognizes, but minimizes, the risk of Apple’s privacy changes to the Company’s advertising business.”
According to the reservation, the owners of Snap shares have been “severely damaged and depleted” due to falling stock prices and Snap’s “errors and omissions”. Black wants to “refund” what Snap claims is a violation of state security laws, though the reservation did not specify real money.
Apple’s private transformation has also disrupted other companies that rely on online advertising for profit. The VP’s second deputy on Meta-branded Facebook, Graham Mudd, said in September that the company “expects more storm surges from platform changes, especially recent iOS updates, to have greater impact in the third phase compared to the second phase.” In the past, Facebook was involved a well-known PR campaign against Apple in 2020 and earlier this year trying to convince users that having too much power on their devices is a bad thing.