Apple was fined EUR150m ($162m) by France’s Competition Authority for its App Tracking transparency (ATT) Framework. This move adds to the pressure as other EU investigations gain traction.
Apple announced the penalty on Monday. It stemmed from the way the iPhone maker rolled-out the ATT service, critics claiming that it undermined competition by limiting advertising services of third parties while boosting Apple’s own ad offerings.
This fine is a reflection of the growing concerns in Europe about dominant technology companies enforcing privacy standards which may act as barriers to commercial activity.
Apple was found to have unfairly impacted its rivals in the app development and publishing industry by introducing ATT. This new technology, which came into effect in 2021 made it harder for third-party developers and publishers to get consent from users.
EU Probes triggered by ATT Rollout
French regulators have said that Apple’s ATT launch was not necessary or proportionate with the stated company goal to protect user privacy.
The French Competition Authority determined that, although the tool asked users if they wanted apps to track them across apps and websites the system had been designed so that third-party developers were put under more burden than Apple.
The number of pop-up consent messages that users were forced to accept was a major problem. Apple integrated its own advertising service into third-party applications, which required users to do less work to accept.
Apple had two settings that allowed users to turn off ad-tracking. The French watchdog said this undermined neutrality.
Apple was also ordered to post the ruling on its website, which is a French standard for any competition-related decisions.
French investigators began their investigation in response to complaints from the industry filed back in 2021. Although emergency action at that time was denied, the regulator conducted a thorough investigation which has led to the financial penalties.
Smaller publishers lose ad revenue
The French authority in its decision highlighted the disproportionate impact ATT has on smaller app and ad services developers.
Most of these smaller companies rely heavily on targeted advertising and data collected by third parties to generate revenue.
Apple changed these practices by blocking access to Apple’s Identifier For Advertisers.
Apple’s competitors were forced to operate under more restrictive conditions as a result of this restriction.
Apple on the other had retained some capabilities to run its ads in the App Store, and for other services.
Competition body argued ATT’s double opt-out procedure placed unnecessary obstacles in front of the users, and increased the likelihood that they would stay in Apple’s eco system. This gave the company an advantage in mobile ad spaces.
Four countries are involved in the investigation
This fine forms part of an ongoing investigation in Europe.
Germany, Italy and Romania have all launched investigations similar to ATT in response to concerns that Apple could be favoring its services, in a way that is in violation of local and EU competition laws.
The investigations are not limited to ATT’s implementation, but also the power Apple has over the App Store and iOS.
The French authorities acted in an independent manner, but any findings that may be made by other countries or EU member states could lead to coordinated EU actions and/or the possibility of additional fines and regulations.
Apple’s Privacy Tool under Fire
Apple released ATT as part of iOS 14.5 in April 2021. It was marketed as a feature that focuses on privacy and gives users the ability to control how their apps track online behavior.
Privacy advocates praised the move, but advertisers and developers reacted immediately.
Apple has seen its ad revenue grow significantly since the launch of the App Store native advertising network.
Apple critics claim that Apple’s designs favor its own ecosystem, while preventing competitors from maintaining viable advertising models.
The ATT framework is technically applicable to all apps. However, according to the French Competition Authority, Apple did not have to adhere to the same standards as other companies when it comes to obtaining user consent. This violated the principle of fairness and harmed competition.
The ICD published the article France fines Apple 150 million Euros for app tracking violations. EU investigations follow.
This site is for entertainment only. Click here to read more
