While Apple says it is trying to improve user privacy with its App Tracking Transparency (ATT) tool, French antitrust regulators have found that the move undermines competition in the market. As a result, Apple was fined 150 million euros (about $162 million). This is the first major antitrust action related to ATT.
What exactly is ATT and what problems did it cause?
ATT allows users to block app tracking. Apple introduced it to ensure privacy. But according to French regulators, the tool significantly limited the opportunities for third-party advertisers by favoring Apple’s own ads. That is, it became difficult for other companies to advertise effectively in Apple’s ecosystem.
The regulators noted that this situation had serious consequences, especially for small publishers. Because their revenue is mostly generated by advertising, and the ATT has cut into that flow.
How did the decision come about?
The investigation, which took place between 2021 and 2023, was based on numerous complaints from advertisers, internet networks and publishers. The fine follows a €1.8 billion fine imposed by the European Union on Apple over its App Store policies.
Apple said it was disappointed by the decision, but French regulators said they were not calling for a complete repeal of the ATT but needed to strike a fair balance.
Pressure on Apple is mounting
Apple is also currently facing investigations in Germany, Italy, Poland and Romania, which will put further pressure on the company’s approach to privacy in Europe.
What does the decision mean?
This historic fine against ATT exposes the ways in which tech giants have been trying to restrict competition behind a veil of secrecy. Other countries may now take inspiration from this decision and begin to examine Apple’s policies more closely. European regulators expect Apple to not only innovate, but also respect competition.
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