Apple Inc. is under scrutiny by French competition regulators for alleged antitrust violations related to its App Tracking Transparency (ATT) tool, Reuters reported.
The French regulator is expected to issue a decision next month, which could result in a fine and an order requiring Apple to halt what authorities deem anti-competitive practices, according to sources familiar with the matter.
Regulatory Concerns Over ATT
Introduced in 2021, Apple’s ATT tool requires applications to obtain user consent before tracking their activity for advertising purposes. While Apple argues that this feature enhances user privacy and transparency, digital advertising and mobile gaming companies—including Meta Platforms’ Facebook—contend that ATT has significantly increased advertising costs and made it more challenging for brands to target consumers on Apple’s ecosystem.
In 2023, the French Autorité de la Concurrence (Competition Authority) formally charged Apple, expressing concerns that the company might be abusing its dominant position by enforcing discriminatory, non-objective, and non-transparent conditions regarding the use of user data for advertising. Authorities believe that ATT may favor Apple’s own advertising services while restricting competition from third-party advertisers.
The upcoming ruling is expected to be the first regulatory decision against ATT, potentially setting a precedent for global antitrust enforcement against similar privacy-focused tools that impact market competition.
Potential Fine and Market Impact
French antitrust fines can reach up to 10% of a company’s global annual revenue, posing a significant financial risk for Apple. While the exact penalty remains unknown, an order to modify or discontinue ATT in its current form could impact Apple’s business model, particularly its advertising segment.
Apple, in response, has pointed to a July 2023 statement asserting that its own advertising operations are held to a higher privacy standard than those of other developers. The company also maintains that its privacy initiatives have previously received support from both French regulators and privacy watchdogs.
Broader European Antitrust Scrutiny
The French investigation is part of wider European regulatory actions against Apple. Earlier this month, Germany’s Federal Cartel Office (Bundeskartellamt) also charged Apple with abusing its market dominance through ATT, alleging that the company granted itself preferential treatment.
Apple is also facing regulatory challenges in the United Kingdom, where authorities have demanded the company provide a backdoor for iCloud data access. In response, Apple removed its Advanced Data Protection tool from the UK market rather than comply, citing privacy concerns. This decision has drawn international criticism, with U.S. intelligence officials arguing that government access to user data undermines privacy rights.
Implications for the Tech Industry
Apple’s ongoing legal battles highlight a fundamental debate between consumer privacy and fair competition in the digital marketplace. While privacy advocates commend ATT for giving users control over their data, regulators and advertising firms argue that it restricts competition and strengthens Apple’s control over digital advertising.
The French ruling—if it includes a fine or policy changes—could set a regulatory precedent across Europe and beyond, shaping how governments balance consumer protection with market fairness in the technology sector. Other global regulators, including those in the United States and European Union, are already examining Apple’s broader advertising policies and App Store practices under antitrust frameworks.
The upcoming decision in France is expected to play a key role in shaping global regulatory approaches to competition in the digital advertising and privacy sectors.
