French antitrust regulators have imposed a hefty fine of €150 million ($162.4 million) on tech giant Apple for abusing its dominant position in mobile app advertising through its App Tracking Transparency (ATT) tool.
The ruling marks the first fine by regulators globally targeting Apple’s ATT feature, which controls user tracking permissions for third-party apps on iPhones and iPads.
Antitrust Concerns Over ATT
According to the Reuters blog, the ATT tool, introduced by Apple in 2021, gives users the ability to decide whether apps can track their activity across other apps and websites for advertising purposes.
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While it was hailed as a step forward in personal data protection, critics, particularly digital advertisers and mobile gaming companies, have argued that it has disrupted the ad ecosystem.
They contend that ATT makes advertising on Apple platforms more costly and less effective, placing smaller publishers and advertisers at a disadvantage.
The French Competition Authority ruled that while Apple’s stated intention of enhancing privacy is legitimate, the implementation of ATT was “neither necessary nor proportionate” to its declared goal.
The regulator asserted that the tool unfairly penalized smaller publishers who rely heavily on third-party data collection for revenue.
Complaints from several groups, including Alliance Digitale and other online advertising associations, prompted the investigation, which focused on the period between 2021 and 2023.
Apple’s Response and Compliance Challenges
While Apple expressed disappointment with the ruling, the company noted in a statement that the French authority did not mandate specific changes to the ATT tool.
“While we are disappointed with today’s decision, the French Competition Authority has not required any specific changes to ATT,” Apple said.
Benoit Coeuré, head of the French Competition Authority, emphasized that it is now up to Apple to ensure compliance with the ruling.
However, the compliance process may face delays as similar investigations into the ATT tool are ongoing in Germany, Italy, Poland, and Romania.
The outcome of these cases could influence how Apple adapts its practices in the European market.
The fine comes amid heightened scrutiny of tech giants in Europe and follows the European Union’s €1.8 billion fine against Apple last year for anti-competitive practices regarding rival music streaming services on its App Store.
Coeuré downplayed concerns about potential U.S. retaliation for the decision, stating that antitrust laws are applied apolitically in France and the EU.
Advertising associations welcomed the ruling, calling it a major victory for advertisers and publishers.
“This decision underlines the need to balance privacy concerns with fair competition in the digital advertising landscape,” said a spokesperson for Alliance Digitale.
This case highlights the ongoing tension between Big Tech’s privacy initiatives and regulators’ efforts to foster competition in the digital economy—a conflict that is unlikely to subside anytime soon.
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