Importance Score: 72 / 100 🔴
French Regulator Fines Apple Millions Over App Tracking Transparency
France’s competition authority, Autorité de la concurrence, has levied a €150 million (~$162.4 million) penalty against Apple. The regulator determined that Apple’s App Tracking Transparency (ATT) system, designed for user privacy, instead constitutes an abuse of its dominant position in the mobile application marketplace. According to the ruling, the ATT initiative, while presented as enhancing user control over personal data, disproportionately impacts smaller publishers and is not deemed essential for its stated privacy protection goals.
Antitrust Body Cites Abuse of Dominance in Mobile App Market
Introduced in 2021, Apple’s App Tracking Transparency framework requires application developers to display a double prompt for user consent to track data across different applications and websites. Conversely, enabling location tracking for Apple’s own applications, and opting out of location services for third-party applications, each require only a single tap.
Privacy Feature Criticized for Impact on Smaller Publishers
The move was immediately met with criticism from numerous companies. Concerns were raised that this requirement would negatively affect publishers by hindering their capacity to track users for personalized advertising. Targeted advertising is a crucial revenue stream for many applications, particularly those offered without charge. Reports indicate substantial financial losses for companies like Snapchat, Facebook, and X (formerly Twitter), estimated to be near $10 billion, as a direct consequence of the ATT policy.
Regulator Acknowledges Privacy Benefits but Highlights Complexity for Third-Party Apps
The French competition authority does not dispute the potential advantages of App Tracking Transparency in safeguarding user privacy. However, the authority contends that the practical implementation of the initiative creates undue complexity for users of third-party applications on iOS, especially when compared to the streamlined experience with Apple’s native applications.
Disproportionate Harm to Smaller Publishers
The agency elaborated on the specific disadvantages faced by smaller publishers: “Although the implementation of ATT has affected all application publishers, the system has particularly disadvantaged smaller publishers lacking alternative targeting resources, especially those without access to substantial proprietary data.”
Fine Imposed for Past Practices; No Changes Mandated
It is important to note that the fine issued by the French agency is solely for Apple’s past conduct related to the system. There is no obligation for Apple to modify or eliminate ATT in the future. An Apple representative communicated to The Wall Street Journal, “While we are disappointed with today’s decision, the French Competition Authority has not required any specific changes to ATT.” Apple did not immediately provide a response to a request for comment from The Verge.
Apple to Display Decision Summary
In addition to the financial penalty, Apple is mandated to prominently display a summary of the regulatory body’s decision on its official website for a period of seven days.