Apple Faces Potential Antitrust Fine as French Regulator Prepares Ruling

Apple is bracing for a possible antitrust fine as the French competition authority moves toward a decision on the company’s privacy control tool, App Tracking Transparency (ATT), according to Reuters. The ruling, expected next month, could mark the first regulatory action against the ATT feature, which has been a point of contention among digital advertisers and mobile gaming companies.

The ATT tool allows iPhone users to control which apps can track their activity, affecting businesses such as Meta Platforms’ Facebook, which rely on targeted advertising. According to Reuters, online advertisers argue that ATT has made it more challenging and costly for brands to reach their audiences and measure ad performance on Apple’s platform.

In 2023, the French regulator formally charged Apple, citing concerns that the company may have “abused its dominant position by implementing discriminatory, non-objective, and non-transparent conditions” regarding the use of user data for advertising. Per Reuters, the watchdog is expected to order Apple to cease these practices and may impose a fine as well. French antitrust penalties can reach up to 10% of a company’s global annual revenue.

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A spokesperson for the French regulator stated, “The decision is expected in the spring. But we can’t comment any further.” Meanwhile, Apple has referred to a statement from July 2023, emphasizing that its advertising business adheres to a higher privacy standard than it requires of other developers. The company also noted that it had previously received support from French regulatory bodies regarding ATT’s privacy objectives.

Apple is not only facing scrutiny in France. According to Reuters, the German antitrust authority also charged the company earlier this month, accusing it of abusing its market power through its app tracking system and giving itself preferential treatment. If found in violation, Apple could be subject to substantial fines in both countries, further intensifying regulatory pressure on its advertising policies.

Source: Reuters