The German antitrust authority has formally charged Apple (AAPL.O) with abusing its market power through its App Tracking Transparency feature, accusing the tech giant of unfairly favoring its own services over competitors, Reuters reported.
The move could result in daily fines if Apple fails to amend its business practices.
The Federal Cartel Office (Bundeskartellamt) has been investigating Apple’s App Tracking Transparency Framework (ATTF) since its introduction in April 2021. The feature requires third-party apps to obtain explicit user consent before tracking them for advertising purposes. While Apple argues the ATTF enhances user privacy, critics—including Meta Platforms (META.O), app developers, and advertisers—argue that it disadvantages competing businesses by restricting their access to essential advertising data.
Allegations of Anti-Competitive Practices
Andreas Mundt, President of the Bundeskartellamt, stated that Apple’s approach creates significant hurdles for competing app publishers, limiting their ability to utilize user data for advertising. Meanwhile, Apple continues to leverage its ecosystem—including the App Store, Apple ID, and connected devices—to collect and utilize user data for its own advertising services, seemingly without the same stringent restrictions imposed on third-party apps.
“The ATTF makes it far more difficult for competing app publishers to access the user data relevant for advertising,” Mundt said. “The question at hand is whether Apple is allowed to apply stricter criteria to other providers than to itself when it comes to requesting such user consent. Doing so may amount to unequal treatment and self-preferencing, which are prohibited under competition law.”
The case was triggered by complaints from industry associations representing publishers, broadcasters, advertisers, and technology firms. Thomas Höppner, a partner at the law firm Hausfeld representing the complainants, described the charges as “groundbreaking,” accusing Apple of creating an artificial opacity in its ecosystem that stifles competition, raises costs for app developers, and ultimately benefits Apple’s revenue streams.
Apple’s Defense and Possible Repercussions
Apple defended its policy in an emailed statement to Reuters, asserting that it adheres to higher privacy standards than it requires from third-party developers. “We … will continue to constructively engage with the Federal Cartel Office to ensure users continue to have transparency and control over their data,” Apple stated.
Under Germany’s competition law (Section 19a(2) of the German Competition Act, GWB) and the EU’s Article 102 TFEU, the Bundeskartellamt has raised concerns over three key aspects of Apple’s ATTF framework:
- Definition of Tracking – Apple defines tracking narrowly, only applying stringent restrictions to cross-company data sharing while excluding its own ecosystem’s internal data collection practices.
- Consent Dialogues – Third-party apps must present up to four consecutive consent dialogues, whereas Apple’s services require fewer steps, making it easier for users to consent to Apple’s data use.
- Interface Design – Apple’s consent dialogues appear designed to encourage users to allow data processing by Apple, while discouraging similar permissions for third-party apps.
If found guilty of breaching Germany’s antitrust rules, Apple could face fines amounting to 10% of its annual turnover. The company has been given an opportunity to respond to the allegations before a final ruling, which could come as early as this year, though it is more likely in 2025.
Broader Implications and EU Collaboration
The case against Apple is part of a broader regulatory push across Europe to ensure fair competition in digital markets. In April 2023, the Bundeskartellamt determined that Apple holds “paramount significance for competition across markets,” subjecting it to heightened scrutiny under Germany’s extended abuse control framework. Apple has appealed this classification, with the case pending before Germany’s Federal Court of Justice.
The Bundeskartellamt is closely coordinating its investigation with the European Commission and other national competition authorities examining the ATTF’s compliance with competition laws. The outcome of these proceedings will have significant implications not only for Apple but also for the broader digital advertising industry, particularly for companies relying on targeted ads to fund free app services.
The Federal Court of Justice is set to deliver its ruling on Apple’s appeal on March 18, 2025, which may shape the regulator’s final decision regarding penalties and enforcement actions against the tech giant.
