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Apple and Facebook Fight Over Privacy

Apple and Facebook are currently ranked 1 and 6 respectively in the list of biggest companies by market cap[1]. These tech behemoths wield immense influence in both the business and social spheres. They also have different, seemingly opposing views on the nature of privacy in today’s society. These disparate philosophies have increased tensions between the two tech giants, and recently it’s escalated. We’ll break down the history and the sources of the standoff.

A brief history

Things weren’t always so frosty between the organizations. In fact, according to a 2012 biography, Apple CEO Steve Jobs admired Facebook CEO, Mark Zuckerberg[2]. So much so, it was a driving force in the reluctance of Apple to start a competing social network. However, after the death of Jobs in 2011, things cooled off considerably when current CEO Tim Cook took over.

Perhaps sensing the way things were going in the industry, Cook came out in 2014 with an open letter that took indirect jabs at Facebook and Google[3]. In it, he claimed Apple was not in the business of creating detailed user profiles on individuals through the use of data mining. While he did not mention his competitors directly, it was obvious who he was denouncing.

That same year, Zuckerberg fired back in an interview with TIME Magazine[4], stating

“A frustration I have is that a lot of people increasingly seem to equate an advertising business model with somehow being out of alignment with you customers. I think it’s the most ridiculous concept. What, you think because you’re paying Apple that you’re somehow in alignment with them? If you were in alignment with them, then they’d make their products a lot cheaper!”

We’d recommend reading this article. Perhaps everyone was a bit naïve at the time, but re-reading it through the lens of 2021 with an understanding of the path Facebook took, the plan Zuckerberg outlined seems much more nefarious and a good example of real-life supervillainy. What could go wrong with the CEO of the world’s most invasive social platform wanting to bring internet connection to the entirety of the world?

We digress. Throughout the next seven years, the two CEOs traded barbs on issues such as the Cambridge Analytica scandal and Apple’s monopolistic control of its App Store. In the end, the arguments usually boiled down to Tim Cook accusing Facebook of invading users’ privacies and Zuckerberg saying Apple products cost too much or that the company is an unfair gatekeeper.

We tend to fall on Cook’s side of the argument. It’s true Apple products cost significantly more than competing hardware solutions. But, as we outlined in a previous blog about free software, trading privacy for free or cheap products has serious drawbacks. Now, back to the feud.  

Tensions boil over

Fast-forward to today. In late 2020, Apple started requiring software on the App Store to come with informative “privacy labels” that clearly state the data the app collects on its users. This was great news for AXEL, but not so much for Facebook. Facebook Messenger alone has a privacy label that reads more like a novel than a brief overview[5].

The labels, combined with the most recent update, have sent Facebook reeling for solutions. The latest update goes a step farther than labels and provides users with the oft-talked-about ‘Opt-In’ scenario regarding data collection[6]. ‘Opt-In’ is a concept that requires users to agree to corporate data collection formally. This is a major step forward in the fight for digital privacy rights. It’s much better than current United States privacy regulations in states such as California and Virginia. Those pieces of legislation mandate companies provide an ‘Opt-Out’ option. While better than nothing, the fact is that consumers are busy. They don’t have the knowledge or desire to scroll through layers of confusing websites to exercise their right to opt-out.

This makes Opt-In the preferred way to offer privacy. It makes privacy the default, which will vastly increase the number of people exiting the corporate surveillance scheme. Unsurprisingly, companies like Facebook are not happy about this! Personalized advertising is the company’s lifeblood, and without user data to gather and analyze, ad revenues will likely fall.

Facebook’s response

Facebook hasn’t taken these changes lying down. Their argument centers around the effects felt by small businesses due to Apple’s changes. Facebook frames its data collection around its usefulness to small businesses. Without the ability to target people most likely to buy, these companies will feel the brunt of the impact, causing many of them to close.

Facebook started a public relations blitz, using television commercials and full-page ads in popular newspapers[7] to drive home the point. It has received some mockery for this in the mainstream media. It certainly does appear to be a rather transparent way to further its own goals while seeming to have more profound principles.

Facebook also raised another issue, and though it didn’t receive as much attention from the media, it probably has more merit. They claim that Apple’s recent privacy push isn’t out of any benevolent intentions for consumers but rather greed. Apple receives anywhere from 15-30% of App Store sales, depending on the developers’ overall revenue. By giving consumers the choice to opt into data collection, they must know that most users will decline. This could cause a shift from free apps that generate revenue based on advertising to more paid apps. In turn, Apple receives more money from downloads since more of them are paid. If true, it’s a very sneaky way for the tech manufacturer to make more money while playing the good guy.

The reality is that both Facebook and Apple are profit-driven mega-corporations looking to protect their businesses. You can’t blame either of them for this feud, although it seems obvious that Apple comes out ahead from a public utility perspective. Whatever the root cause, any initiative to substantially increase digital privacy is a good thing in our book.

AXEL’s commitment

AXEL is dedicated to fighting for digital privacy rights for everyone. The concept of data custody and forging lasting trust between consumers and technology is embedded into our corporate philosophy. We develop our products and services to live up to these lofty ideals.

If you are looking for a privacy-focused cloud storage and file-sharing platform, try AXEL Go free for 14-days. During the trial period, you receive all Premium features, including removing file-size restrictions, Secure Fetch functionality, and storage encryption. AXEL never collects personal information to sell to third parties or mines your content for advertising. We’re an alternative tech company you can trust. Secure your files. Secure your digital future with AXEL.

[1] “Largest Companies by Market Cap”, CompaniesMarketCap.com, April 30, 2021, https://companiesmarketcap.com/

[2] Emil Protalinski, “Steve Jobs admired Zuckerberg too much to compete with him”, CNET.com, July 17, 2012, https://www.cnet.com/news/steve-jobs-admired-zuckerberg-too-much-to-compete-with-him/

[3] Steve Musil, “Tim Cook explains Apple’s privacy policies in open letter”, CNET.com, Sept. 17, 2014, https://www.cnet.com/news/tim-cook-explains-apples-privacy-policies-in-open-letter/

[4] Lev Grossman, “Inside Facebook’s Plan to Wire the World”, Time.com, Dec. 15, 2014, https://time.com/facebook-world-plan/

[5] Ben Lovejoy, “App privacy labels show stark contrasts among messaging apps”, 9to5mac.com, Jan. 4, 2021, https://9to5mac.com/2021/01/04/app-privacy-labels-messaging-apps/

[6] Ian Sherr, “Apple’s privacy battle with Facebook just became all-out war”, CNET.com, April 26, 2021, https://www.cnet.com/news/apples-privacy-battle-with-facebook-just-became-all-out-war/

[7] Megan Graham, “Facebook blasts Apple in new ads over iPhone privacy change”, CNBC, Dec. 16, 2020, https://www.cnbc.com/2020/12/16/facebook-blasts-apple-in-new-ads-over-iphone-privacy-change-.html

Here’s Why Free Software Can Be a Poison Pill

There was a time when consumer expectations did not demand software be free. Sure, there has always been freeware, but it wasn’t the norm. If someone in the 1980s wanted a word processor, they expected to pay for it!

Today, these expectations have flipped. Why would someone pay for software or web services? Social media platforms are free. Big Tech companies like Google offer free alternatives to traditionally-paid programs such as word processors, spreadsheets, and visual presentation software. What’s the harm? The services are high-quality and users aren’t out a dime. It’s a win-win, right? Well, much like your relationship status during college, it’s complicated.

A costly endeavor

The truth is, software development is expensive. It’s always been expensive. And, even with the proliferation of outsourcing, it remains so today. It is a highly specialized skill requiring considerable knowledge and continued education. The median pay for a developer in the United States was over $107,000 in 2019[1]. Prices for outsourced developers vary by country but expect to pay around $30,000 a year for quality work[2]. Many development teams employ a mixture of domestic and foreign help.

Unlike the 80s, where a small team could complete programs in a basement, now larger units are necessary to deal with the complexities of modern computing. Big Tech’s full-featured products certainly require these sizeable teams of high-cost developers. Their offerings also typically need massive investments in physical infrastructure to keep the services running for millions of potential users. Knowing all this, how do they provide the end products for free? Out of the goodness of the shareholders’ hearts?

The tradeoff

Unsurprisingly, no. Big Tech companies are some of the largest businesses in the world, with billions in yearly revenue. The “free” apps and services they provide do require a form of payment. Your personal data. As the saying goes,” If you aren’t paying for the product, you are the product.”

Today, tech megacorporations collect an absurd amount of data on their users (and in Facebook’s case, even non-users[3].)  The data they find most useful usually falls into the following categories:

  • Email receipts. Who people email consistently can be a wealth of information for data miners.
  • Web activity. Big Tech wants to know which sites everyone visits, how long they stay there, and a host of other browsing metrics. They track across websites, analyze likes and dislikes, and even assess mouse cursor movement.
  • Geolocation. When tracking internet activity isn’t invasive enough, many companies evaluate where people go in the real world. Most don’t understand that their phones’ GPS sensors aren’t strictly used for directions to their Aunt’s new house.
  • Credit card transactions. Purchase records outline a person’s spending habits. Since the entire point of collecting all of this data is to squeeze money out of the user in other ways, this info is extremely valuable.

Imagine the models companies can create of their users, given all of that information. They use these models to personalize advertisements across their platforms. Advertisements more likely to result in sales mean more revenue, so they have an incentive to collect as much data as possible. But that’s not the only way they monetize personal information. Many sell it to third-parties too. Are you creeped out yet?

Alternative data providers

Organizations called ‘alternative data providers’ buy up all of this information, repackage it, and sell it off to whoever wants it (usually financial institutions looking to gain broad insights about the direction of a given market.)

As of 2020, there are over 450 alternative data providers[4], and what happens to your information after they get their hands on it is about as opaque as it gets. This is especially the case in the United States, as there are no federal privacy laws that set clear expectations regarding personal data sales and stewardship. However, there is hope with the passing of California’s new privacy law that Congress will finally tackle the subject.

Privacy policies

One way consumers can stay informed about an organization’s data collection guidelines is to read through its privacy policy and terms of service agreement. There, they can find general information about their practices. Unfortunately, organizations seldom list the specifics (i.e., which companies do they share with or sell the data to, etc.) These documents also tend to be excessively long and filled with confusing legalese. It makes it difficult to extract even basic information and leads to a frustrating user experience.

It’s no wonder that according to a Pew Research survey, only 22% of Americans read privacy policies “always” or “often” before agreeing to them[5]. Most just hit accept without a second thought. We recommend always looking into a company’s privacy policy and terms of service before using their products. If you don’t want to slog through the jargon, try out ToS;dr, a website that breaks down these documents into readable summaries. They also give Big Tech companies “privacy grades” based on what they find. A few examples include: (note: “E” is the lowest grade)

  • Facebook – E. Big surprise here. The company that stores data, whether the person has an account or not, did not score well.
  • Amazon – E. Although online retail is their bread and butter, Amazon also dabbles in providing free apps and services such as the Kindle App. They track people across websites and sell consumer data to third parties, among other egregious tactics.
  • Google – E. Google collects biometric data, shares info with third parties, retains data after erasure requests, and much more.

Search for your favorite social media platform or Big Tech service and see how it stacks up. Spoiler alert: probably not very well.

Another consideration

Open source projects have a poor reputation for cybersecurity since the developers are unpaid and less motivated to provide reliable support. Conversely, free Big Tech products typically get a pass on those risks. After all, their software is well-funded and receives developer support throughout its entire lifespan. This minimizes a few crucial points, though.

First, large tech corporations benefit immensely from a built-in following and the integrated marketing apparatuses at their disposal. This attracts a significantly higher baseline of users for any given service than a startup’s equivalent solution.  These massive user bases attract cybercriminals.

This leads to the second point; while these companies support their products and offer cybersecurity patches regularly, there will always be vulnerabilities. The services almost always run on centralized server farms, making for an enormous attack surface. And the products with the most users will always be the primary targets for phishing scams. So, it’s kind of a paradox. More marketing, support, and users lead to more attacks.

File sharing app examples

There are countless examples of vulnerabilities found in Big Tech apps and services, but here are a few examples in the file-sharing sector:

Google Drive: In the Fall of 2020, threat actors exploited a flaw in Google Drive to send push notifications and emails to users[6]. The messages contained malicious links containing dangerous malware. The situation affected hundreds of thousands of users.

Microsoft OneDrive: Although not officially breached, in April 2020, Microsoft announced a critical vulnerability in their OneDrive cloud app[7]. They quickly released a security fix, but it is unknown if hackers knew about the vulnerability beforehand or if they breached unpatched systems after Microsoft disclosed it.

Dropbox. In 2012, a hacker stole login credentials to over 68 million Dropbox users and sold them on the Dark Web. As if this weren’t bad enough, it took Dropbox three years to disclose the breach! So, during that time, nearly 70 million users were in danger.

ShareIt. This platform may be lesser-known in the United States, but it has 1.8 billion users worldwide and is very popular throughout Asia and Russia. A recent security audit found crucial exploits that could result in hackers stealing sensitive data[8]. Its website doesn’t even default to HTTPS, meaning security doesn’t seem to be a priority for the development team.

In conclusion, free platforms from multibillion-dollar corporations can be dangerous from both data collection and cybersecurity standpoints. Consumers should do their research and consider paying a small fee for privacy and security-focused competitors.

AXEL Go

AXEL is dedicated to giving data custody back to the user. We never sell personal information to third parties or mine accounts. Our file-sharing application, AXEL Go, utilizes blockchain technology, the InterPlanetary File System, and AES 256-bit encryption to provide the most secure cloud-sharing experience in the industry.

Sign up for AXEL Go and receive a free 14-day trial of our Premium service. Premium accounts receive five times more online storage than the Basic account, along with more security options and no restrictions on file sizes. After the trial, users pay $9.99/month to continue the Premium service or downgrade to the Basic account. So, stop worrying and share your documents securely with AXEL Go.

 

 

 

[1] “Occupational Outlook Handbook: Software Developers”, U.S. Bureau of Labor Statistics, 2019, https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm

[2] Julia Kravchenko, “How Much Does It Cost to Hire Developers: Software Developer Salary Guide 2018”, Hackernoon.com, March 12, 2018, https://hackernoon.com/how-much-does-it-cost-to-hire-developer-software-developer-salary-guide-2018-590fb9e1af2d

[3] Kurt Wagner, “This is how Facebook collects data on you even if you don’t have an account”, Vox, April 20, 2018, https://www.vox.com/2018/4/20/17254312/facebook-shadow-profiles-data-collection-non-users-mark-zuckerberg

[4] Rani Molla, “Why your free software is never free”, Vox, Jan. 29, 2020, https://www.vox.com/recode/2020/1/29/21111848/free-software-privacy-alternative-data

[5] Brooke Auxier, Lee Rainie, Monica Anderson, Andrew Perrin, Madhu Kumar, Erica Turner, “Americans and Privacy: Concerned, Confused And Feeling Lack Of Control Over Their Personal Information”, Pew Research Center, Nov. 15, 2019, https://www.pewresearch.org/internet/2019/11/15/americans-attitudes-and-experiences-with-privacy-policies-and-laws/

[6] Lindsey O’Donnell, “Scammers Abuse Google Drive to Send Malicious Links”, threatpost, Nov. 2, 2020, https://threatpost.com/scammers-google-drive-malicious-links/160832/

[7] Davey Winder, “Windows OneDrive Security Vulnerability Confirmed: All You Need To Know”, Apr. 15, 2020, https://www.forbes.com/sites/daveywinder/2020/04/15/windows-onedrive-security-vulnerability-confirmed-all-you-need-to-know/?sh=517e144b6fa3

[8] Ron Amadeo, “’ShareIt’ Android app with over a billion downloads is a security nightmare”, ars Technica, Feb. 16, 2021, https://arstechnica.com/gadgets/2021/02/shareit-android-app-with-over-a-billion-downloads-is-a-security-nightmare/

A Story of Data Custody in the Modern Age: Part III

Lucas finds AXEL

In Part II of Lucas’ story, he found many companies were still collecting vast amounts of customer information even with new privacy regulations. But, that didn’t mean he was ready to shun technology. It was a modern conundrum shared by every technophile who values their privacy.

“I’m an IT professional who loves the latest and greatest technology. I can’t close myself off from the world and go hide out in a treehouse in the woods. That shouldn’t be my only option just because I don’t want these huge companies spying on me or making detailed models of my behavior. So, I started to scour the web looking for programs and services that weren’t going to auction off my information to the highest bidder. I stumbled upon AXEL from a Google search about cloud storage, and loved what I saw.”

Lucas and AXEL Go

Specifically, Lucas found our private, secure file storage and sharing application, AXEL Go.

“AXEL Go is basically my new best friend. I get instant access to all of my files and can share them with anyone. I use it at home on my PC and on my iPhone when I’m out. The first thing that impressed me was the company kept promoting this concept called ‘data custody.’ I’d never heard of the term before, but after reading into it a bit, it really hit home. It just means they’re all about giving control of data back to the people.”

AXEL is a champion of data custody and considers personal information private property. We never mine any content stored on AXEL Go and do not sell personal information to third parties, ever.

“That in itself sets them apart from most cloud companies. But they not only respect your data, they protect it too. Their security features are way more advanced than other cloud options.”

AXEL Go utilizes three secure technologies as the backbone of AXEL Go; blockchain, the InterPlanetary File System (IPFS), and password encryption. This unique combination makes AXEL Go an industry leader in security, ensuring your content stays safe at rest and in motion.

“It’s the best of both worlds. I don’t have to worry about the company itself selling my info, but I also am less concerned about hackers breaching their system. Their servers are decentralized, and I always use encrypted passwords on my files. So hackers can’t attack a single vulnerable server to get my content, and even if they do somehow get to my files, they won’t be able to access them. I looked it up, and the encryption algorithm they use for passwords takes billions of years to brute force crack. It’s reassuring. Now, if AXEL could make a social media platform…”

A happy ending

Thank you, Lucas, for your kind words and support for AXEL products. If you’re like Lucas and want a cloud sharing solution that provides security and privacy, download AXEL Go today. It’s free to signup, and our Basic accounts include all of AXEL Go’s unique features, 2GB of storage space, and enough fuel tokens to facilitate thousands of shares. AXEL envisions a better future for the internet, where everyone’s data gets the respect it deserves. Together, we will achieve this goal.

A Story of Data Custody in the Modern Age: Part II

Lucas does more research

When we last left our favorite 25-year old IT specialist, Lucas, he wasn’t feeling too hopeful. He had learned about the status quo of corporate data collection and felt powerless to stop it. But, he didn’t give up. He decided to educate himself more thoroughly on how the big players in Silicon Valley viewed their users’ privacy. He was especially interested in their responses to recent privacy legislation such as the California Consumer Privacy Act (CCPA) and the European General Data Protection Regulation (GDRP).

“I had read dozens of articles about the subject but never got any information straight from the big tech firms themselves. I thought that maybe with the adoption of the CCPA and GDRP, they might have changed their tunes. So, I did something drastic. Something I’m not sure anyone else in the world did. I read through their updated privacy policies.”

Now that’s dedication to the cause! What did Lucas find after slogging through multiple privacy policies?

“It was certainly an improvement. At least now, they had to tell you what info they collect and broadly how they use it. But, they are still hoarding your personal information. You have to opt-out of most of it, and how many people do you see doing that? I had to put on a pot of coffee to get through these privacy policies. And I hate coffee! Most people I know just clicked “Accept” on the popup and kept going about their regular routines.”

Lucas found that even with the new regulatory frameworks in place, companies still frequently had access to information such as your stored files, contact networks, GPS locations, other websites visited, and third-party advertising data.

“They’re still watching you. They’re still developing their models of you to sell to advertisers or manipulate behavior.”

So, what now?

It was apparent to Lucas that waiting on the well-known tech companies to hop aboard the privacy train wouldn’t cut it. But what options did he have?

“Unfortunately, there aren’t any mainstream alternatives to the big players when it comes to social media. If I want to stay in touch with friends and family without resorting to an old-fashioned phone call, it’s tough. I recommend going into your account and digging into the privacy settings. Opt-out of what you can and just know that you’re analyzed continuously. With other applications, luckily, you fare much better.”

This is where Lucas and AXEL finally cross paths!

“I love to store and share files in the cloud. It’s so convenient to have all my important content wherever I need it. But I wasn’t impressed with the popular cloud storage services out there due to privacy concerns. And that includes their security features too. Because even if your privacy policy is decent, if you’re storing all my documents on an insecure server, it doesn’t really matter. So I looked into what else was out there that might better fit my needs. That’s when AXEL popped up.”

A perfect match

In part three of this blog series about Lucas’ journey, we’ll delve into what attracted him to our company and AXEL Go. Check back soon for an exciting conclusion about how AXEL strives to make the internet a better place for everyone.

A Story of Data Custody in the Modern Age: Part I

Meet Lucas

Lucas is a 25-year old tech support specialist for a medium-sized company in Richmond, Virginia. He’s worked there for the last three years and has risen from a junior employee to his current salaried position. Throughout his time at the company, he’s learned a great deal about computing technology and general cybersecurity best practices. He now reads popular cybersecurity blogs to stay up-to-date and knowledgeable about his field.

“To be honest, in college, I never really kept up on cybersecurity trends. I guess I was too busy keeping tabs on who was attending what party. But after I graduated and got my first real job, I started paying more attention.”

While doing this, however, he has discovered some concerning trends.

“That’s when I noticed two things: 1) Hacks and breaches occur WAY more often than I thought; and 2) Companies are tracking, buying, and selling a LOT of personal data.

When you start following these cybersecurity blogs, there are articles almost every day about massive data breaches or hacks fetching million-dollar ransoms. Then, when you get into the details, you see 10 million, 40 million, 200 million personal records breached. It’s crazy!”

Upon further inspection, Lucas found the sheer number of records breached to be less troublesome than other aspects.

“But that’s only the beginning of the rabbit hole. You start to unpack these breaches and find that the company that left hundreds of millions of personal records vulnerable didn’t have hundreds of millions of users. So, where did those records come from?  Well, they bought them from other giant companies that are doing the same thing they’re doing; mining their users for advertising information. It gets really gross. You finally realize that the individual has no clue about who has their data or how it’s being used and sold.”

“And, it’s kind of a sad progression. You go from feeling shocked, to upset, to powerless in a short period of time. It’s difficult to know where to start in the fight against these kinds of data collection policies. You eventually settle into a hopeless feeling of acceptance. The companies responsible make too much money for anything to change.”

The end of the story?

Luckily, this story does not have to end on such a sour note. There are other tech companies out there, fighting for data privacy and protection. You just have to know where to look!

In an upcoming article, we’ll follow Lucas on his journey as he searches for alternative ways to utilize modern technology. Will Lucas have his hope rekindled? Is there a plausible future that treats individuals like people and not statistics? Check back soon to see how the next chapter plays out.