: Facebook to let iPhone users know how data is used for personalized ads

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Facebook Inc. is letting iPhone users know how their data is being used for personalized ads in a pre-emptive move before Apple Inc. makes privacy changes to its operating system that Facebook claims will hurt its advertising business.

A notification on the smartphone screen will ask Facebook FB, +1.40% and Instagram users to let their app and website activity be used for personalized ads and to “support businesses that rely on ads to reach customers,” according to a Facebook blog post on Monday.

The unusual move by Facebook is the latest in a public spat over Apple’s AAPL, +2.16% decision to ask iPhone users whether to allow apps to track them across other websites and apps. Such a feature, Facebook claims, would severely limit online advertising and kill small businesses in the process.

“We believe Apple’s new prompt is designed to present a false trade off between personalized ads and privacy; when in fact, we can provide both,” a Facebook spokeswoman told MarketWatch.

The dispute has led to public criticisms between both the companies that has Facebook considering legal action vs. Apple.

Read more: Why Facebook is considering an antitrust lawsuit against Apple