Apple is under pressure from Germany’s Federal Cartel Office (FCO), which has accused the company of abusing its market power through App Tracking Transparency (ATT).
The regulator alleges that Apple applies stricter tracking rules to third-party apps while giving itself preferential treatment, a move that could lead to fines if Apple fails to adjust its policies.
The FCO’s preliminary findings, following a three-year investigation, claim that ATT has made it harder for competing app publishers to access user data for advertising, limiting competition.
Apple, in an emailed statement to Reuters, has defended its system, stating that it “holds itself to a higher standard than third-party developers” and will continue to engage with regulators to ensure user privacy and transparency.
Potential Penalties for Apple
Apple now has the opportunity to respond before facing potential daily fines or further proceedings. Companies found guilty of breaching Germany’s antitrust laws can be fined up to 10 percent of their annual revenue.
The case was sparked by complaints from advertising agencies, publishers, and tech firms, who argue that ATT has created an opaque system benefiting Apple’s own services while raising costs and reducing competition.
Law firm Hausfeld, which represents the complainants, called the charges “groundbreaking,” stating that Apple cannot use privacy as a pretext to restrict competition in its favor.
With Apple losing market share in Europe and facing increasing regulatory scrutiny, the company will need to navigate both legal challenges and competition concerns.
While Apple positions ATT as a privacy tool, regulators argue that it reinforces Apple’s dominance at the expense of other businesses. A final ruling could arrive next year, but for now, the ball is in Apple’s court to respond to the allegations.
I used to defend, or at least tolerate Apple’s behavior.
Now, I say to the EU, go get ’em.