In a landmark decision that underscores growing European scrutiny of Big Tech, French antitrust regulators have fined Apple 150 million euros ($162 million) over its App Tracking Transparency (ATT) feature.
The ruling, delivered on Monday, accused Apple of implementing ATT in a manner that was “neither necessary nor proportionate” to its stated goal of protecting user privacy, while simultaneously disadvantaging third-party publishers and advertisers.
Apple introduced ATT in 2021 as a tool to empower users with more control over their data. The feature requires apps to seek explicit user consent before tracking them across websites and applications.
If users decline, the app loses access to their advertising identifier, which is crucial for targeted ads.
However, critics argue that Apple has weaponized ATT to strengthen its own advertising business while restricting competition.
The French Competition Authority (FCA) found that the feature disproportionately affected smaller publishers who depend on third-party advertising for revenue.
It also noted that users had to opt out of Apple’s own ad tracking system twice, making the process cumbersome and undermining the neutrality of ATT.
France’s move against Apple aligns with growing regulatory actions across Europe. Germany, Italy, Romania, and Poland have launched similar probes into ATT, questioning whether the policy unfairly benefits Apple’s own advertising services.
READ ALSO:Â Apple becomes first US company to reach $3trn valuation
The European Commission has also been tightening regulations under the Digital Markets Act (DMA), aiming to curb anti-competitive practices by tech giants.
Beyond the hefty fine, Apple is required to publicly display the French regulator’s decision on its website for seven days.
The ruling could set a precedent for how tech companies balance privacy initiatives with fair market competition.
Apple, for its part, has defended ATT as a necessary measure to enhance user privacy.
The company has yet to confirm whether it will appeal the ruling, but given the increasing legal scrutiny, a broader shift in Apple’s ad policies may be inevitable.
As European regulators intensify their oversight, the battle over digital advertising and data privacy is set to redefine the power dynamics of the tech industry.