Google to phase out cross-app ad tracking on Android devices

• Apple's new restrictions had profound effects on companies that sell mobile ads based on user data, including Snapchat and Meta, the company formerly known as Facebook.
• Meta said earlier this month that it expects Apple's ad tracking changes to cost it $10 billion in ad revenue in 2022.

How it works: Currently, people using Android devices are assigned special IDs that advertisers use to build a behavioral profile of the user. They use this profile to eventually place highly targeted ads on the person's screen.

• Google said it will now phase out the ID system and develop a new privacy-focused advertising system that will limit sharing of user data with third parties.

Thought bubble, via Axios' Sara Fischer: Google's efforts to change privacy practices in Chrome, its web browser, have faced challenges, including industry pushback on its initial proposal and delayed timelines.

• The company's efforts on Android will likely be met with similar industry disagreement, given how many players are involved in the app economy.

The big picture: Operating systems and web browsers are pushing to introduce more privacy standards amid increased regulatory pressure in the U.S. and Europe.

• Democrats last month introduced a bill that would essentially ban most targeted advertising.
• Google said last month it would also change how targeted ads work on its Chrome web browser after privacy advocates criticized its previously-announced plan.

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