Bad news could be brewing for Apple in France where the national competition authority has issued a statement of objections related to how it tracks iOS users.
The watchdog, L’Autorité de la Concurrence, said today that it suspects the iPhone maker of abusing a dominant position by implementing what it described as “discriminatory, non-objective and non-transparent” conditions for the use of user data for advertising purposes.
It has been investigating how Apple uses iOS user data for ad targeting for several years — following complaints by several advertising industry groups, which, back in 2021, sought to have the watchdog block Apple’s introduction of the App Tracking Transparency (ATT) feature.
ATT requires third party apps to ask iOS users for permission to track them for ad targeting. And advertisers quickly accused Apple of not playing fair since, unlike third party apps, its own native iOS apps did not trigger the same up-front ask to users over whether Apple could use their data for so-called personalized ads. Instead, iOS users had to proactively search in settings to opt out of Apple’s own tracking.
In March 2021, the French watchdog declined to block the introduction of ATT but said it would continue to investigate whether Apple is applying less restrictive rules for its own apps vs third party developers (aka ‘self preferencing’).
Today it’s warned Apple that it believes it is abusing a dominant position by doing that.
Apple was contacted for comment on the French watchdog’s statement of objections.
It has previously defended how it implements app tracking — arguing it applies its pro-privacy rules equally to all developers, including itself, while simultaneously claiming it holds itself to a higher privacy standard than “almost any other company” by providing users with a choice over ad tracking.
Cupertino now has a chance to respond to the French watchdog’s accusations before a final decision will be reached by the regulator.
If it confirms an antitrust breach it has powers to fine Apple and/or order it to rectify infringing behavior. However at this stage the watchdog only suspects an abuse. And in a brief press release announcing the statement of objections L’Autorité emphasized this step does not prejudice the outcome of its investigation.
