Quick Summary: Apple has been fined €150 million ($162.42 million) by French regulators for unfairly restricting competition in mobile app advertising through its App Tracking Transparency (ATT) feature. While Apple avoided mandatory system changes, this marks a significant antitrust ruling, with further investigations ongoing in Europe and beyond.
France Slaps Apple with Hefty Fine
Apple is under regulatory fire in France, facing a substantial €150 million ($162.42 million) fine for allegedly abusing its power in mobile app advertising between 2021 and 2023. French antitrust regulators claim that Apple’s App Tracking Transparency (ATT) feature has unfairly limited competition in the digital advertising space.
The ATT Controversy
Apple introduced ATT as a privacy tool, allowing iPhone and iPad users to control which apps can track their activity. While Apple promotes ATT as a win for user privacy, critics argue that it disproportionately benefits Apple while restricting smaller businesses and advertisers.
Regulators sided with critics, stating that Apple’s system was “neither necessary nor proportionate” to its goal of protecting user data. Smaller publishers, who rely on third-party data for revenue, were hit hardest by the change.
No System Changes Required
Despite the fine, Apple avoided a bigger setback. The French competition authority did not mandate any modifications to ATT, marking a minor victory for the tech giant. Additionally, Apple must display the decision on its website for seven days.
Apple’s Growing Legal Challenges
This is the first time any antitrust authority has penalized Apple over ATT, but it is unlikely to be the last. Germany’s antitrust watchdog is also investigating Apple, accusing the company of giving itself preferential treatment. In February, German regulators formally charged Apple, adding to the company’s mounting legal troubles in Europe.
Global Impact of ATT
The effects of Apple’s ATT changes extend beyond Europe. When the system launched in 2021, it disrupted the online advertising industry. Meta Platforms, formerly Facebook, reported a staggering $10 billion revenue loss before adjusting its advertising strategy.
More Penalties on the Horizon?
The European Union’s executive body is set to announce findings from three separate investigations into breaches of the Digital Markets Act (DMA). Two of these cases involve Apple, while one targets Meta. These investigations could lead to the first fines issued under the DMA, with decisions expected by the end of the week.
Meanwhile, across the Atlantic, U.S. President Donald Trump has signaled scrutiny of the DMA, warning that it could lead to retaliatory tariffs on European tech regulations.
Apple’s Response
Apple expressed disappointment with the French ruling but emphasized that it is not required to make immediate changes to ATT. The company continues to defend its stance on privacy, despite growing criticism and regulatory pressure worldwide.
With ongoing investigations and legal battles, Apple’s dominance in digital advertising and privacy enforcement remains under close watch.
