Germany’s Antitrust Regulator Raises Concerns Over Apple’s App Tracking Policies

Germany’s competition authority, the Bundeskartellamt (FCO), has raised concerns over Apple’s App Tracking Transparency framework (ATTF), suspecting the tech giant of engaging in self-preferential behavior, according to TechCrunch. The findings, released on Thursday as part of an ongoing investigation that began in 2022, suggest that Apple may not be treating third-party app developers fairly when it comes to tracking permissions.

Per TechCrunch, Apple has been under scrutiny in Germany since April 2023, when it became subject to special abuse controls designed to prevent large digital companies from unfairly leveraging their market power. These regulations prohibit Apple from giving its own products and services an advantage over competitors. Additionally, under the broader European Union’s Digital Markets Act (DMA), Apple is also restricted from self-preferencing in key areas such as iOS and the App Store.

The core issue in the FCO’s investigation revolves around differences in how Apple applies its tracking permissions framework to third-party developers versus its own apps. The ATTF allows iOS users to block third-party apps from tracking their data for advertising purposes, but the FCO argues that Apple’s own tracking practices are not held to the same standard.

According to TechCrunch, the FCO’s preliminary findings highlight three key concerns. First, Apple defines “tracking” in a manner that mainly restricts third-party companies from processing user data for cross-company advertising, while Apple itself is not subject to the same stringent rules. The regulator noted that Apple can still combine user data across its ecosystem, including information from the App Store, Apple ID, and connected devices, to enhance its own advertising business.

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Second, the FCO pointed out discrepancies in consent dialogues. Third-party apps may have to present users with up to four consecutive permission pop-ups under ATTF, whereas Apple’s apps typically only display a maximum of two. Furthermore, Apple’s consent requests do not explicitly disclose its own cross-service data processing practices, which the FCO believes creates an uneven playing field.

Finally, the watchdog expressed concerns that the design of Apple’s tracking consent pop-ups subtly influences user choices. The FCO contends that Apple’s wording encourages users to allow data collection for its own apps while steering them toward refusing tracking permissions for third-party applications.

In a statement, Andreas Mundt, president of the FCO, emphasized the significance of the issue, noting that Apple’s expansive digital ecosystem provides the company with unparalleled access to user data crucial for advertising. He also pointed out that while personalized advertising is commercially vital for competing app developers offering free applications, Apple’s ATTF framework makes it considerably harder for them to gather the necessary user data.

Source: TechCrunch