France Slaps Apple With $162M Privacy Fine Over Mobile App Tracking
According to the anti-trust body, the crux of the issue concerns an infringement between 26 April 2021 and 25 July 2023 involving the App Tracking Transparency (“ATT”) that Apple introduced in 2021. The ATT is a privacy tool that makes it possible for users of Apple devices (iPhones and iPads) to either accept or deny access to third-party applications that may want to access their data. If consent is granted, the app proceeds to use such data for targeted advertising.
The regulatory watchdog believes that while the idea behind the feature was commendable, as it ensures that users exercise control over their data, the implementation is questionable. It says that “while the objective of the App Tracking Transparency (“ATT”) framework is not at its core problematic, how ATT is implemented is neither necessary for nor proportionate with Apple’s stated objective of protecting personal data.”
According to French regulators, the feature makes it harder for users to access third-party apps and affects smaller publishing companies that depend on income from advertising while providing an unfair advantage for Apple’s advertising business. For instance, it says that if users wanted to deny the targeted ad, ATT only required one action. However, when it comes to accepting the targeted ads, two confirmations are needed. Moreover, while ATT requests double confirmation from third-party apps for consent to access data, it doesn't impose the same requirement on Apple's app.
Apple has expressed disappointment over the ruling. It maintains that the feature affords users more privacy control and has gained support from users and data protection authorities worldwide. It equally mentioned that the French regulator did not point out any specific changes that should be made to the ATT system. In response, the head of the regulatory body, Benoit Coeure, while acknowledging the absence of any specific request for change in the operation of the ATT, has asked Apple to abide by the ruling.
This is coming at a time when the issue of tariffs and counter-tariffs has dominated conversations between the US and Europe. However, Coeure says it would not stoke any division as he believes the US and Europe are on the same wavelength when it comes to applying anti-trust laws on big tech firms.
Apple is not expected to immediately comply with the ruling as it awaits the outcomes of similar investigations on the ATT in other European countries such as Germany, Poland, and Romania.
