Germany’s antitrust watchdog, the Bundeskartellamt (FCO), is intensifying its investigation into Apple’s app privacy framework, an inquiry that began in 2022. The FCO suspects that Apple may not be adhering to legal requirements by failing to treat third-party app developers equally within its App Tracking Transparency framework (ATTF). This scrutiny comes as the FCO raises concerns over Apple’s potential self-preferencing practices, which could be in breach of German and European competition laws.
Apple’s ATTF grants iOS users the choice to prevent third-party apps from tracking their usage for advertising purposes. However, the FCO contends that Apple’s dialogue prompts are crafted to subtly encourage users to consent to Apple’s data processing. In contrast, the dialogues presented for third-party apps appear designed to steer users towards refusing consent. This discrepancy in presentation between Apple’s own apps and those of third parties is at the heart of the FCO’s competition concerns.
FCO’s Investigation and Apple’s Appeal
The FCO has identified three aspects of Apple’s framework that could potentially impede fair competition. These concerns have prompted Apple to appeal against the FCO’s designation, seeking to overturn the watchdog’s authority to exercise special abuse powers. Since April 2023, Apple has been prohibited from favoring its own services and products in Germany, highlighting the seriousness of the allegations.
The European Commission has also taken an interest in Apple’s practices, issuing a preliminary breach finding last summer regarding the operation of the App Store. Moreover, Apple’s treatment of third parties is under examination under the European Commission’s Digital Markets Act (DMA). The DMA strictly prohibits self-preferencing on iOS and other core platform services, further intensifying the scrutiny on Apple.
Despite these allegations, Apple maintains its stance that the App Tracking Transparency feature enhances user privacy control. Tom Parker, a spokesperson for Apple, defended the company’s actions, asserting that consumers have embraced ATTF as a tool for greater privacy management. The feature has garnered support from privacy advocates and data protection authorities worldwide, underscoring its perceived benefits for user privacy.
Andreas Mundt, president of the FCO, expressed concerns that Apple’s conduct might amount to self-preferencing. Such behavior could potentially stifle competition and disadvantage third-party developers who rely on the platform’s fair treatment. As investigations continue, both Apple and its critics await further developments in this ongoing regulatory battle.
What The Author Thinks
The investigation into Apple’s App Tracking Transparency (ATTF) framework raises significant questions about the balance between user privacy and fair competition. While Apple argues that ATTF enhances privacy control for users, the concerns voiced by Germany’s Bundeskartellamt and the European Commission suggest that the company may be using privacy as a tool to favor its own services, potentially undermining competition. This scrutiny highlights the ongoing tension between tech giants seeking to maintain user trust through privacy features and the regulatory bodies determined to ensure a level playing field. The outcome of this investigation could have far-reaching implications not only for Apple but also for the broader tech industry and its relationship with regulators in Europe.
