Apple Inc. (AAPL.O) has been fined €150 million ($162.4 million) by French antitrust regulators for abusing its dominant position in mobile app advertising through its App Tracking Transparency (ATT) tool.
This landmark ruling marks the first fine imposed by any antitrust authority specifically targeting Apple’s ATT feature, which has been a contentious issue since its introduction.
The decision comes a year after the European Union levied a €1.8 billion fine on Apple for anti-competitive practices related to its App Store policies, particularly for hindering rival music streaming services.
The French Competition Authority’s ruling underscores Europe’s growing scrutiny of Big Tech companies and their influence on digital markets.
The ATT Tool and Its Impact
Apple’s ATT tool, introduced in 2021, allows iPhone and iPad users to control which apps can track their activity across other applications and websites.
While positioned as a privacy-enhancing feature, the tool has drawn criticism from digital advertisers and mobile gaming companies.
They argue that it increases the cost and complexity of advertising on Apple’s platforms, particularly for smaller publishers who rely heavily on third-party data collection to sustain their business models.
The French Competition Authority stated that while ATT’s goal of protecting personal data is legitimate, its implementation was “neither necessary nor proportionate” to achieve this objective.
The regulator emphasized that the tool disproportionately harmed smaller publishers and advertisers who depend on targeted advertising revenues.
Regulatory Process and Broader Implications
Benoit Coeuré, head of the French Competition Authority, clarified during a press conference that the ruling does not mandate specific changes to ATT but requires Apple to ensure compliance with competition laws.
Coeuré also dismissed concerns about potential backlash from U.S. authorities, stating that antitrust enforcement remains an apolitical process on both sides of the Atlantic.
Apple expressed disappointment with the decision but noted that no immediate changes to ATT have been mandated.
“While we are disappointed with today’s decision, the French Competition Authority has not required any specific changes to ATT,” Apple said in a statement.
The compliance process could extend over time as Apple awaits rulings from regulators in Germany, Italy, Poland, and Romania, who are also investigating the ATT tool.
Complaints From Industry Stakeholders
The investigation into Apple’s practices was prompted by complaints from several industry associations representing online advertisers, publishers, and internet networks.
These groups included Alliance Digitale, Syndicat des Régies Internet (SRI), Union des Entreprises de Conseil et d’Achat Média (Udecam), and Groupement des Éditeurs de Services en Ligne.
They hailed the decision as a significant victory for advertisers and smaller publishers.
“The decision highlights how dominant platforms must not use privacy as a pretext to stifle competition or disadvantage smaller players,” Alliance Digitale said in a statement.
Broader Context of Big Tech Regulation
This ruling is part of a broader wave of regulatory actions targeting Big Tech companies worldwide.
In recent years, both European and U.S. authorities have intensified scrutiny over anti-competitive practices in digital markets.
Coeuré noted that there is alignment between U.S. and European regulators on applying antitrust laws to major digital platforms.
As regulatory pressure mounts globally, Apple faces increasing challenges in balancing its privacy initiatives with competition laws.
The outcome of ongoing investigations in other jurisdictions will likely shape how tech giants implement privacy tools without violating antitrust regulations.
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