Apple's Pricey Privacy: French Regulators Slap a 150 Million Euro Fine
AAPL
By Justin Emerson
In a move that might anger US President Donald Trump and the MAGA movement, French antitrust regulators have fined Apple 150 million euros ($162.4 million) for allegedly misusing its dominant position in mobile app advertising. The fine, announced on Monday, targets Apple's App Tracking Transparency (ATT) tool, which has been a bone of contention since its introduction.
The ATT feature, designed to let iPhone and iPad users control which apps can track their activity, has been criticized by advertisers and competitors who rely heavily on online advertising.
While the French competition watchdog acknowledged the noble intent behind ATT—protecting personal data—it took issue with its implementation, describing it as neither necessary nor proportionate.
This decision marks the first time any antitrust authority has penalized Apple over ATT. The case was sparked by complaints from various associations representing online advertisers, publishers, and internet networks. They accused Apple of leveraging its market power unfairly, particularly harming smaller publishers who depend on third-party data collection for revenue.
Interestingly, while the fine is significant, it pales in comparison to the 1.8 billion euro penalty Apple faced from the EU last year over App Store practices. That case, initiated by Spotify, accused Apple of stifling competition in the music streaming sector.
Despite the financial hit, Apple expressed disappointment with the French ruling but noted that no changes to the ATT tool were mandated. Meanwhile, the German antitrust agency is also scrutinizing Apple, having charged the company in February with giving itself preferential treatment through ATT. As part of the penalty, Apple must display the French decision on its website for a week, ensuring the world knows of its latest regulatory skirmish. Whether this fine will lead to changes in Apple's privacy practices remains to be seen, but one thing is clear: the debate over digital privacy and competition is far from over.
Nothing off the table
This comes as the European Union is gearing up to slap new fines on industry titans Apple and Meta. The EU is scrutinizing Apple's App Store rules, suspecting they might be limiting app developers from guiding consumers to external offers. Meanwhile, Meta's controversial "pay or consent" model, which gives users the choice between agreeing to data tracking or shelling out for an ad-free experience, is also under the EU's microscope. Typically, fines for such infractions could soar to 10% of a company's global revenue. However, the Financial Times suggests that the European Commission might be considering smaller fines this time. The reason? A desire to avoid ruffling the feathers of Donald Trump.
However, on Friday, Germany signaled that it is keeping all options open in response to the looming threat of U.S. tariffs. A German government spokesperson said that "nothing is off the table" when it comes to potential countermeasures, following a suggestion from an EU lawmaker to target American tech giants. The spokesperson further clarified that any decisions would be made collectively within the European Union. The backdrop to this diplomatic stance is Trump's recent announcement of a 25% tariff on vehicles imported into the United States.
Bernd Lange, head of the European Parliament's international trade committee, suggested that the EU could impose fees on digital service providers like PayPal and Google (Alphabet) if negotiations with the U.S. falter. "In the case of digital service providers, there is also a huge economic interest on the part of U.S. companies," Lange noted.
Tech appears poised to become the next arena for tariffs and retaliatory measures...
Justin Emerson