PARIS, France — Apple Inc. has been fined $162 million by France’s competition authority, Autorité de la concurrence, over the company’s App Tracking Transparency (ATT) tool introduced in 2021. The regulatory body ruled that Apple’s implementation of this privacy tool breached both French and European Union data protection laws, citing its complex consent process and biased treatment toward app publishers.
The decision comes after the European Commission recently accused Apple of violating the Digital Markets Act. The timing underscores mounting scrutiny from European regulators regarding Apple’s adherence to stringent privacy and competition standards within the EU, which applies to all entities operating and marketing within the region.
The contentious ATT framework, included in updates to iOS, iPadOS, and tvOS since April 2021, necessitates user permission through pop-up messages to track activities for advertising purposes. However, the French watchdog criticized the mechanism, claiming its multiple consent pop-ups overly complicate usage, potentially skewing users’ ability to make informed privacy choices.
In addition to complicating user consent, the ATT tool was faulted for showing favoritism in how Apple applies tracking permissions to itself compared to other publishers, a violation of recommendations for neutrality advised by France’s data protection agency, Commission Nationale de l’informatique et des Libertés (CNIL).
The Autorité de la concurrence considered several factors in determining the fine, including the duration of the infringement spanning from April 2021 to July 2023 and Apple’s substantial market power. This ruling might propel further regulatory actions against Apple by other EU nations, with compliance to EU’s General Data Protection Regulation (GDPR) and French Data Protection Act highlighted as a pivotal scale for future assessments.
Prior to the launch of ATT, several advertisers and app publishers voiced concerns, fearing the framework would hinder their ability to generate revenue through targeted ads. These entities flagged the framework to the Autorité, prompting a detailed investigation despite the authority’s initial decision in March 2021 not to impose interim measures.
In a 2023 statement, CNIL in collaboration with the Autorité emphasized the need to balance competition laws with data privacy in the digital economy, indicating ongoing regulatory focus on how major tech companies manage user data.
This conflict underscores a broader debate on the intersection of privacy, user experience, and fair competition in the digital marketplace. Tracking user data across apps and websites is a common practice that helps companies tailor advertisements, but it raises significant privacy concerns, leading to increased legal and consumer scrutiny.
Given this context, Apple’s future in the European market will likely involve navigating a landscape shaped by rigorous enforcement of digital privacy laws and balancing these against commercial interests in targeted advertising. Apple might need to adapt its practices considerably to forestall any further punitive actions from the EU’s regulatory bodies.
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