Onavo

Onavo was an Israeli mobile technology company founded in 2010 by Guy Rosen and Roi Tiger. It began by developing consumer mobile utilities that helped people monitor, compress, and manage mobile-data usage. Its applications included Onavo Count, which reported how much bandwidth individual applications consumed, and Onavo Extend, which used data-compression techniques to help users stretch mobile plans. The company’s consumer products also generated aggregated information about application usage and mobile behavior. The business attracted early recognition in the Israeli and international startup ecosystem. In 2011, Onavo received several startup and mobile-technology awards, including recognition at VentureBeat’s MobileBeat conference, the International Startup Festival, and The Next Web. It raised a $3 million Series A round from Magma Venture Partners and Sequoia Capital in May 2011, followed by a $13 million Series B round involving Magma Ventures, Sequoia Capital, and Horizons Ventures. These investments supported the expansion of its applications and its development of a business analytics offering. Onavo launched Onavo Insights in 2013. Unlike its consumer-facing utilities, Insights was designed as a mobile market-intelligence platform. It used information derived from the company’s installed consumer applications to estimate application adoption, engagement, and market share. This type of data became strategically valuable to Facebook, which was seeking better visibility into rapidly growing mobile services and competitors. Facebook acquired Onavo in October 2013 for approximately $120 million. After the transaction, Onavo became part of Facebook’s Israeli operations, later associated with Facebook Israel. Facebook continued to use Onavo’s consumer applications, including the VPN product Onavo Protect, while also drawing on the company’s analytics capabilities for competitive intelligence and product strategy. Reporting later connected Onavo-derived analysis with Facebook’s evaluation of services such as Snapchat and WhatsApp. Facebook’s 2014 acquisition of WhatsApp was widely discussed in the context of the company’s desire to understand the growth of mobile communications platforms, although the precise role of Onavo data in that decision is based on reporting about internal strategy rather than a public formal acquisition rationale. Onavo Protect was marketed as a virtual private network intended to provide security and help users understand or manage their mobile data. Because VPN traffic passes through the service’s infrastructure, however, Onavo could observe information about application and website usage. Critics argued that the product’s privacy-oriented presentation obscured the commercial value of the data collected and Facebook’s ownership of the service. The brand was consequently described by privacy advocates and media organizations as spyware-like, particularly after Facebook promoted Onavo Protect inside its main iOS application in the United States in 2018. Apple removed or required the removal of Onavo Protect from the iOS App Store in August 2018 after determining that its data-collection practices conflicted with Apple rules restricting apps from gathering information about other applications. In February 2019, following further scrutiny of Facebook Research, a related market-research program, Facebook announced the closure of the Android version of Onavo Protect and ended the service’s collection of personal data. Onavo therefore ceased to operate as a consumer VPN brand. The company’s legacy combines an important mobile-analytics capability with a major privacy controversy. Its technology illustrated how consumer utility apps could produce market intelligence at scale, but its data practices also generated litigation, regulatory action, and criticism concerning informed consent, teenagers’ participation, app-store governance, and the use of behavioral data for competitive strategy. In Jul…

Onavo was established in Israel in 2010 by Guy Rosen and Roi Tiger as a mobile software startup focused on helping consumers understand and reduce mobile-data consumption. Its early applications monitored bandwidth use and applied compression techniques to reduce the amount of data required by mobile services. The company’s utility model also created a source of aggregated information about how applications were being used in the market. The startup gained industry attention in 2011, receiving awards at MobileBeat, the International Startup Festival, and The Next Web. It raised a $3 million Series A investment from Magma Venture Partners and Sequoia Capital in May 2011, followed by a $13 million Series B round involving Magma Ventures, Sequoia Capital, and Horizons Ventures. Onavo subsequently expanded from consumer utilities into analytics. Its Onavo Insights product estimated application market share and engagement using information collected through the company’s consumer products. Facebook acquired Onavo on October 13, 2013, for approximately $120 million. The acquisition gave Facebook an Israeli mobile-technology team, a consumer application distribution channel, and data-analysis capabilities at a time when mobile usage was reshaping the technology industry. Following the acquisition, Onavo’s technology was used to monitor the growth and behavior of other applications. Reporting later described Facebook’s use of Onavo-derived information in evaluating competitors including Snapchat and in its strategic consideration of WhatsApp. Onavo Protect became the brand’s most controversial product. It operated as a consumer VPN and was promoted as a way to secure connections and manage data consumption. In practice, routing traffic through the VPN allowed the service to observe application and website usage. Critics maintained that users were not given sufficiently clear information about Facebook’s ownership and the commercial use of the resulting data. Reports also described an internal Facebook effort, later called Project Ghostbusters, that sought detailed analytics about encrypted traffic from services including Snapchat, YouTube, and Amazon. In 2018, Facebook advertised Onavo Protect to users through its main iOS application. The promotion intensified public criticism and drew Apple’s attention. Apple’s App Store rules restricted applications from collecting data about other apps, and Onavo Protect was withdrawn from the iOS App Store in August 2018. In January 2019, reporting disclosed Facebook Research, a related market-research initiative that recruited users, including teenagers, to install software with broad access to device and usage data. Apple revoked Facebook’s enterprise certificates after determining that the program misused an enterprise distribution mechanism, although the certificates were later restored. Facebook announced on February 21, 2019 that it would close Onavo Protect and remove its Android application. The service stopped collecting personal data. The broader controversy led to continuing scrutiny of Facebook’s use of consumer data for competitive intelligence and market research. In December 2020, the Australian Competition and Consumer Commission began proceedings alleging misleading or deceptive conduct in the marketing and use of Onavo data. In July 2023, Australia’s Federal Court ordered Meta’s owner to pay A$20 million and legal costs. Onavo is therefore best understood today as a discontinued brand whose principal historical importance lies in the relationship between consumer VPN products, mobile analytics, platform competition, and privacy regulation.

• 2023

  Australian court penalty

  [2]Facebook owner Meta penalised $20 million for misleading Onavo VPN app usersaccc.gov.au

  Australia’s Federal Court orders Meta’s owner to pay A$20 million in relation to Onavo disclosures and legal costs.

• 2019

  Protect service discontinued

  [1]Onavoen.wikipedia.org

  Facebook announces the closure of Onavo Protect and ends its personal-data collection.

• 2018

  Onavo Protect leaves iOS

  [1]Onavoen.wikipedia.org

  Onavo Protect is removed from Apple’s iOS App Store after objections concerning collection of information about other applications.

• 2013

  Onavo Insights launches

  [1]Onavoen.wikipedia.org

  Onavo introduces a mobile analytics platform intended to measure application adoption, usage, and market share.

• 2013

  Facebook acquisition

  [1]Onavoen.wikipedia.org

  Facebook acquires Onavo for approximately $120 million.

• 2012

  Series B financing

  [1]Onavoen.wikipedia.org

  The company raises a $13 million Series B round involving Magma Ventures, Sequoia Capital, and Horizons Ventures.

• 2011

  Early startup awards and Series A financing

  [1]Onavoen.wikipedia.org

  Onavo receives several mobile-startup awards and raises a $3 million Series A round from Magma Venture Partners and Sequoia Capital.

• 2010

  Onavo is founded

  [1]Onavoen.wikipedia.org

  Guy Rosen and Roi Tiger establish Onavo in Israel as a mobile software and analytics startup.

Originally positioned as a consumer mobile-data management and optimization provider, Onavo later became a mobile analytics and competitive-intelligence asset within Facebook. Its consumer VPN was presented as a privacy and security utility, but the business became associated with the collection and analysis of application-usage data.

• Mobile data monitoring

  Onavo Count

  A consumer utility that tracked mobile bandwidth consumption by application. It helped users identify which applications were using data and manage limited mobile-data allowances.

• Mobile data compression

  Onavo Extend

  A mobile-data optimization service that used compression techniques to reduce data consumption. It was aimed at consumers seeking to extend the value of their mobile plans.

• Consumer VPN

  Onavo Protect

  A virtual private network marketed for mobile security and data management. Because traffic passed through the service, Onavo could analyze application and website usage, producing substantial privacy criticism and regulatory scrutiny.

• Mobile analytics · 2013

  Onavo Insights

  A market-intelligence platform that used information derived from Onavo’s consumer applications to estimate application usage, engagement, and market share. It became strategically valuable to Facebook after the acquisition.

• 2023

  Australian Federal Court Onavo penalty

  The court ordered Meta’s owner to pay A$20 million after proceedings concerning alleged failures to explain that data collected through Onavo could be used for Facebook’s commercial purposes, plus legal costs.

  Source

• 2020

  Australia sues Facebook over Onavo data use

  In December 2020, the Australian Competition and Consumer Commission sued Facebook over its use of the Onavo Protect app. The regulator alleged that Facebook misled Australian consumers about collecting and using their personal activity data for commercial purposes. Facebook said it would review the filing and continue to defend its position. The dispute centered on how the Onavo Protect app's data practices were presented to consumers in Australia.

  Source

• 2019

  Facebook Research and Project Atlas controversy

  A market-research program associated with techniques similar to Onavo reportedly collected extensive device and usage information from participants, including some teenagers. The controversy led to Apple’s revocation of Facebook’s enterprise certificates and intensified scrutiny of Onavo.

  Source

• 2018

  Privacy criticism over Onavo Protect

  Privacy advocates and media organizations criticized Onavo Protect as spyware-like because its VPN architecture enabled analysis of application and website usage within a product marketed around privacy and security.

  Source

Read more

• 2018Facebook in-app promotion of Onavo Protect

  United States · iOS markets

  Facebook promoted Onavo Protect to users through the Facebook iOS application as a mobile security and VPN utility. The promotion generated criticism because the service’s ownership and data-use implications were viewed as insufficiently prominent.

  Outcome. The controversy contributed to Apple’s pressure to remove Onavo Protect from the iOS App Store.

  Source

• 2019

  Sunset of Onavo ProtectStrategy

  Background

  Renewed criticism followed reporting about Facebook Research, a related data-collection program.

  Action taken

  Facebook announced that it would close Onavo Protect and remove its Android application, with personal-data collection ending immediately.

  Aftermath

  Onavo ceased operating as a consumer VPN brand.

  Source

• 2018

  Withdrawal of Onavo Protect from iOSStrategy

  Background

  Apple objected to the service’s collection of information about other applications under its App Store privacy rules.

  Action taken

  Facebook removed Onavo Protect from the iOS App Store.

  Aftermath

  The withdrawal increased scrutiny of Facebook’s use of consumer VPN data and weakened the product’s availability.

  Source

• 2013

  Facebook acquires OnavoM&A

  Background

  Facebook sought stronger mobile analytics and visibility into rapidly growing applications and competitors.

  Action taken

  Facebook purchased Onavo for approximately $120 million and integrated the company into its Israeli operations.

  Aftermath

  Onavo’s consumer apps and analytics became part of Facebook’s mobile strategy and competitive-intelligence activities.

  Acquisition price. $120 million (October 2013)

  Source

• 2013

  Facebook acquires Onavo[1]Onavoen.wikipedia.org

  M&A

  Facebook acquired the Israeli mobile analytics company for approximately $120 million, bringing its consumer applications and market-intelligence technology into Facebook’s operations.

1. 1Onavoen.wikipedia.org
2. 2Facebook owner Meta penalised $20 million for misleading Onavo VPN app usersaccc.gov.au
3. 3Australia sues Facebook over Onavo data usetechcrunch.com
4. 4Australia sues Facebook over its use of Onavo to snoopfinance.yahoo.com
5. 5Australia sues Facebook over its use of Onavo VPN apparchive.siasat.com