Apple Faces Skirting Attempt On Ad-Tracking Rules From China Trade Groups Aided By Proctor & Gamble: Report

Apple Inc’s AAPL new privacy tools centered on advertising face a challenge from a mechanism under testing in China, which was developed with the help of Procter & Gamble Co PG, the Wall Street Journal reported Thursday.

What Happened: P&G reportedly cooperated with dozens of Chinese trade groups and tech firms working with the state-backed China Advertising Association to develop the technique dubbed CAID, people familiar with the matter told the Journal.

The technique, developed using a technology called device fingerprinting, is said to be under testing through apps and gathers iPhone user data.

CAID can reportedly use an algorithm to track users for advertising purposes in ways that Apple wants to prevent.

P&G said in a statement that it is providing input to the grouping in a manner that is consistent with its goal of finding ways to “deliver useful content consumers want in a way that prioritizes data privacy, transparency and consent.”

“That means partnering with platforms and publishers—both directly and through our advertising associations across the globe,” said the multinational, as per the Journal.

Why It Matters: Other companies involved in CAID include TikTok parent ByteDance Ltd, and Tencent Holdings Ltd TCEHY. 

Apple said that it believes “users should be asked for their permission before being tracked.”

See Also: Apple Refuses To Concede To Facebook, Other Advertisers Over Tracking Users Without Consent

The Tim Cook-led company said that if apps are found to disregard user’s choice, they will be rejected, the Journal reported.

The privacy-related changes are due to become applicable in Apple’s upcoming iOS 14.5 update.

Facebook Inc FB is also at odds with the Cupertino, California-based tech giant over its take on advertisement tracking. The company’s staffers have made revelations on how the social media giant will be affected.

Price Action: Apple shares closed nearly 1.9% higher at $130.36 on Thursday and gained 0.39% in the after-hours session. On the same day, P&G shares closed 0.38% higher at $137.26 and rose 0.24% in the after-hours trading.