Without directly condemning Apple’s data collection tool, the antitrust regulator has determined that the conditions surrounding its implementation amounted to an abuse of a dominant market position. The decision comes at a time of tension between the US and the EU over the treatment of Big Tech.
Muhamamd Yehia
France’s national competition regulator imposed a €150 million fine on Apple on Monday, citing the company’s abuse of its dominant position in the distribution of mobile applications on iOS and iPadOS.
At the core of the French competition authority’s decision is Apple’s data collection system, which regulators say goes beyond what is necessary. The Autorité de la concurrence condemned the company’s approach as “neither necessary for nor proportionate with Apple’s stated objective of protecting personal data.”
In 2021, Apple introduced App Tracking Transparency (ATT), a tool designed to give users more control over their personal data. The feature prompts users to consent to data collection on third-party applications within the iOS and iPadOS ecosystem, limiting targeted advertising unless explicitly allowed.
While Apple has promoted ATT as a major step toward protecting user privacy, regulators in France argue that the system may also serve to reinforce the company’s dominance by restricting competitors’ access to valuable data.
In Monday’s decision, the French watchdog did not question the ATT itself but found its implementation methods “artificially complicate the use of third-party applications and distort the neutrality of the framework to the detriment of small publishers financed by advertising.”
According to the French regulator “multiple consent pop-ups are displayed, making the use of third-party applications in the iOS environment excessively complex.” It added that “while advertising tracking only needs to be refused once, the user must always confirm their consent a second time.”
The result was an asymmetric system, the antitrust watchdog said, whereby publishers were required to obtain double consent from users for tracking on third-party sites and applications, while Apple did not ask for consent from users of its own applications
Apple reacted in a statement Monday claiming that ATT “gives users more control of their privacy through a required, clear, and easy-to-understand prompt about one thing: tracking.” It added “that prompt is consistent for all developers, including Apple, and we have received strong support for this feature from consumers, privacy advocates, and data protection authorities around the world.”
The EU is expected to close two investigations into Apple under its Digital Markets Act in the coming days. One targets the rules of the App store and whether they prevent app developers from informing users about offers outside its App Store free of charge; another concerns Apple’s browser options on iPhones.