Apple has been fined $162.4 million for abusing its market power in the mobile advertising space through its privacy tool, according to the French antitrust watchdog.
The fine, which was announced on Monday by the French Competition Authority, targets Apple’s implementation of the “App Tracking Transparency” or “ATT” tool. The tech giant has been penalised for the “distribution of mobile applications on iOS and iPadOS devices between April 2021 and July 2023”.
The ATT tool requires apps to obtain user consent before tracking them with the Identifier for Advertisers (IDFA). The IDFA is a specialised device identifier that helps advertisers track activity for targeted ads while maintaining user anonymity. Users can, however, disable or reset it in their privacy settings.
The regulator brought the case against the tech giant following complaints from various associations representing digital advertisers, publishers, and internet networks, which accused Apple of abusing its market power in the country. The watchdog says the implementation of ATT particularly “penalised smaller publishers”.
The antitrust authority had earlier denied a request for interim measures, proceeding with its investigation. According to the regulator, the purpose of the ATT mechanism is not inherently “problematic”. However, the way the tool is implemented is not in line with Apple’s “stated objective of protecting personal data”.
“The introduction of the framework led to multiple consent pop-ups being displayed, making the use of third-party applications in the iOS environment excessively complex,” the authority says, adding that the way different pop-up windows worked together harmed app publishers and advertising service providers financially.
Apple has responded to the fine by expressing disappointment. “While we are disappointed with today’s decision, the French Competition Authority has not required any specific changes to ATT.”
The ATT tool is also under investigation in Italy, Romania, Poland, and Germany.
