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I'm sure the owners of Tumblr thought the same.
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The owners of Tumblr thought being banned from the app store was certain death, but losing the nsfw content was only possible death.
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In reality, losing the nsfw content was certain death, but losing the app would have just been a downsizing. Maybe not even a major one - platforms are sticky as hell. I think most people would happily use the browser.

Now if you go out of your way to make your browser experience dogshit, like Patreon... Then yeah, losing the app store is very bad.

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It would be in their rights to do it.

Its users who value their privacy will be in their rights to leave and we will.

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They have a right to ask for my passport and SSN. And I have a right to say "hell no" and delete my account in response.
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It's not a nothingburger; it's a massive collection of personally identifying information.
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Especially by the company already involved in a leak of a massive trove of pictures, personal details (including IDs), etc: https://www.bbc.co.uk/news/articles/c8jmzd972leo

What could possibly go wrong this time...

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Except it is scarily easy to find servers which openly have minors selling NSFW content. Or BDSM servers targeted at "14-28 year olds".
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