Apple faces a multi-million euro fine for unfair practices with its tracking framework on Apple devices, which allegedly disadvantages small app publishers.
The French competition authority imposes a fine of 150 million euros on Apple. The reason is the company’s abuse of its dominant position in implementing the App Tracking Transparency (ATT) framework on iOS and iPadOS devices. Apple allegedly made this system too complex for third-party apps, putting smaller app publishers at an unfair competitive disadvantage compared to Apple’s apps (for which the system is simpler).
Misuse of Consent
According to the Autorité de la concurrence, Apple harmed competition between April 2021 and July 2023 through the way the ATT system was introduced and applied. This system asks users for permission to track their activity on third-party apps for targeted advertising. In practice, this led to double consent requests and a complex usage process for non-Apple apps.
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External app publishers had to go through multiple steps to allow users to track their data. Apple, on the other hand, only asked for permission once for its own apps, and only from iOS 15 onwards. This asymmetric treatment was considered to distort competition, especially for small app developers who rely on advertising revenue.
The French data protection authority CNIL had previously noted that the operation of the ATT system is unnecessarily complicated and that this was not necessary to effectively protect privacy.
Unfair Competition
The French competition authority concludes that the ATT framework, as applied by Apple, is not necessary and disproportionate in relation to the intended protection of personal data. The organization acknowledges Apple’s right to implement privacy-protecting measures but emphasizes that this must be done in a balanced manner, especially given the company’s dominant market position.
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The Autorité states that the neutrality of the ATT system was undermined by rules that prevented users from giving or refusing their consent in a balanced way. According to the authority, the damage to app publishers and digital advertising providers could have been prevented by limited adjustments to the system, as previously recommended by the CNIL.
In addition to the fine, Apple must publish a summary of the decision on its website for seven days. The decision is an example of the collaboration between privacy and competition authorities in France. Both bodies emphasize that privacy protection and fair competition can go hand in hand.