Abstract

This case examines Apple Inc.’s strategic decision to prioritize the privacy of its users through the App Tracking Transparency (ATT) framework, which it introduced in iOS 14.5. The move strengthened Apple’s brand as a protector of privacy and resonated with users, but at the same time, it upset the digital advertising ecosystem, affecting competitors such as Meta, small e-commerce brands, and platforms that depended on advertisements. The case asks students to examine the strategic, ethical, and regulatory consequences of Apple’s approach, especially in view of its increasing advertising business. It also considers whether privacy can become a long-term competitive advantage, or if Apple runs the risk of its brand trust being eroded by functioning both as a referee and player in the app economy.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Comprehend how privacy can become a brand by itself and a competitive strategy in the digital economy.
• Examine the knock-on effect of ATT on all stakeholders such as competitors, officials, advertisers, and consumers.
• Assess the friction between vertical integration in tech ecosystems and platform neutrality.
• Examine how the regulatory ecosystem (e.g., DMA, antitrust probes) shapes decisions related to a business model.
• Critically study the ethical predicaments involved in a scenario where a company sets and enforces a rule, and also benefits from it.

Keywords

Apple; Privacy; App Tracking Transparency; ATT framework; Privacy; Platform Neutrality; DMA; Antitrust Probes; Digital Ethics; Brand Integrity; Ad Ecosystem Disruption; Transparency; Surveillance Capitalism; Privacy-first Marketing Strategy