Snapchat Faces a Lawsuit For Allegedly Misleading Investors About the Impact of Apple’s Privacy Updates
Snap is facing a lawsuit from one of its shareholders for allegedly exaggerating how well it could adapt to the privacy updates Apple rolled out earlier this year, Reuters reports.
In a class-action complaint filed in federal court this week, Snap investor Kellie Black accused the social media company of downplaying how much Apple’s new privacy policy would tank advertising revenue. Since debuting in April, Apple’s App Tracking Transparency feature, which lets iOS users grant or deny apps permission to track their activity, has pissed off more than a few social media companies whose business models rely on this kind of tracking for targeted advertising.
According to one estimate, the iOS feature has cost Snap, Facebook, Twitter, and YouTube as much as $9.85 billion in lost revenue in the second half of 2021.
