PARIS — France’s antitrust authority has levied a fine of 150 million euros ($162 million) against Apple over its App Tracking Transparency (ATT) feature which, while aimed at safeguarding user privacy, has allegedly resulted in anti-competitive practices. According to the French Competition Authority, the requirement for iPhone and iPad apps to secure user consent for tracking was not inherently problematic. However, concerns emerged regarding the manner of its implementation, which was deemed neither necessary nor proportionate to the aim of data protection.
Introduced in April 2021, ATT emerged as part of an update to the iOS system for iPhones and iPads, compelling apps to obtain explicit permission to gather data for personalized advertising. Though praised for bolstering privacy, the feature drew criticism from technology rivals who argued it could threaten the viability of smaller apps dependent on ad revenue, potentially forcing them to impose charges on users. The fine, addressing Apple’s misuse of its dominant position in the mobile app distribution arena, pertains to the period between April 2021 and July 2023. However, given Apple’s sizable revenue of $124 billion in just the final quarter of the previous year, the financial penalty remains relatively insignificant.
The French watchdog highlighted that the feature’s launch led to a surge of consent requests from third-party apps, inundating users with pop-up messages that made navigating the iOS ecosystem overly complex. Furthermore, the authority questioned the system’s impartiality, suggesting that it placed smaller publishers, who significantly rely on third-party data collection to sustain their operations, at a disadvantage.
In response, Apple defended the ATT feature, emphasizing that it empowers users with more control over their privacy through a clear and concise prompt concerning “tracking.” Apple stated that this prompt is consistent across all app developers, including the company itself, and has garnered substantial support from consumers, privacy advocates, and global data protection authorities. While expressing disappointment with the FCA’s decision, Apple noted that no mandatory modifications to ATT were imposed by the French authority.