Apple Faces Potential French Antitrust Penalty Over Privacy Feature

Regulators in France are set to rule on Apple’s App Tracking Transparency tool, which has drawn criticism from digital advertisers.

Apple is likely to face an antitrust fine in France as the country’s regulatory authority prepares to deliver a ruling next month on the company’s App Tracking Transparency (ATT) feature, according to sources familiar with the matter.

ATT, introduced to give iPhone users control over which apps can track their activity, has disrupted the digital advertising landscape. Companies like Meta’s Facebook and other online advertisers argue that the tool has increased costs and made it harder to effectively target ads on Apple’s platforms.

In 2023, the French competition authority accused Apple of potentially misusing its market dominance by applying discriminatory and non-transparent policies regarding user data access for advertising. The upcoming decision is expected to order the tech giant to cease such practices, with a financial penalty also likely—the first regulatory action against ATT.

French antitrust fines can reach up to 10% of a company’s global annual revenue. A spokesperson for the regulator confirmed that a ruling is anticipated in the spring but declined to provide further details.

Apple, in response, pointed to a statement from July 2023, asserting that its own advertising practices adhere to stricter privacy standards than those imposed on other developers. The company also noted previous backing from both French regulators and privacy watchdogs regarding ATT’s privacy goals.

Meanwhile, Apple is also facing scrutiny in Germany, where competition authorities recently charged the company with leveraging its market position unfairly through the app tracking system, potentially exposing it to another significant fine.

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