* Apple Maps to display paid ads, competing with Google
* Apple ( AAPL ) emphasizes privacy controls in new map ads
* Regulatory pressures on Apple's ( AAPL ) revenue streams in
Europe
* Apple ( AAPL ) revamps business tools, aiding small business
device management
By Stephen Nellis
SAN FRANCISCO, March 24 (Reuters) - Apple ( AAPL ) on
Tuesday said it plans to introduce paid ads to its maps service
in the U.S. and Canada this summer, marking its entry into a
business long dominated by Alphabet's Google.
Apple Maps, an app that comes bundled on hundreds of
millions of iPhones and other devices each year, will display
paid advertising on top of existing organic search results.
Advertisers will be able to claim their physical location
through a set of business tools, which Apple ( AAPL ) also said Tuesday
it plans to revamp next month.
Apple ( AAPL ) did not say how much revenue it expects to generate
from the new service, or how many users of its 2.5 billion
active devices regularly use its maps service. But the move
launches Apple ( AAPL ), which has long sought to set itself apart from
rivals who generate most of their sales from advertising by
playing up its data privacy controls, into more direct
competition with both Google and Meta Platforms ( META ) for
local advertising dollars.
Apple ( AAPL ) said that its new map ads will maintain its privacy
controls and that a user's location and the ads they view and
interact with will not be associated with the user's Apple ( AAPL )
account. The company also said that what it calls "personal
data" stays on a user's device, is not collected or stored by
Apple ( AAPL ) and is not shared with third parties.
The move comes at a time when some of Apple's ( AAPL ) biggest cash
generators - its business of taking a commission on app
developer subscriptions and the billions of dollars a year
Google sends to Apple ( AAPL ) for sending search traffic to Google - are
under regulatory pressure in Europe and threatened by new AI
technology that is reducing traditional search traffic.
The move could also intensify scrutiny of Apple's ( AAPL ) efforts to
block rivals such as Meta from gathering data on Apple ( AAPL ) users,
which Meta and European publishers have opposed on antitrust
grounds as Apple ( AAPL ) ramps up its own ad business.
In addition to map advertising, Apple ( AAPL ) said Tuesday it plans
to revamp its tools for businesses, with improved tools to set
up and distribute Apple ( AAPL ) devices to employees without needing
special expertise. Among the other changes, Apple ( AAPL ) plans to make
free a tool for managing devices that was previously a paid
tool.