Apple Faces Likely French Antitrust Fine for Privacy Tool

The new Apple iPhone SE is displayed at the Apple Store on 5th Avenue shortly after it went on sale in Manhattan, in New York City, New York, US, March 18, 2022. (Reuters)
The new Apple iPhone SE is displayed at the Apple Store on 5th Avenue shortly after it went on sale in Manhattan, in New York City, New York, US, March 18, 2022. (Reuters)
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Apple Faces Likely French Antitrust Fine for Privacy Tool

The new Apple iPhone SE is displayed at the Apple Store on 5th Avenue shortly after it went on sale in Manhattan, in New York City, New York, US, March 18, 2022. (Reuters)
The new Apple iPhone SE is displayed at the Apple Store on 5th Avenue shortly after it went on sale in Manhattan, in New York City, New York, US, March 18, 2022. (Reuters)

Apple is facing a likely antitrust fine as the French regulator prepares to rule next month on the company's privacy control tool, two people with direct knowledge of the matter said.

Called App Tracking Transparency (ATT), the feature allows iPhone users to decide which apps can track user activity, helping companies like Meta Platforms' Facebook and online advertisers tailor ads to users and measure their impact, Reuters reported.

Digital advertising and mobile gaming companies including Facebook say it has made it more expensive and difficult for brands to advertise on Apple's platforms.

The French regulator charged Apple in 2023, saying it was concerned that the company might "abuse its dominant position by implementing discriminatory, non-objective and non-transparent conditions for the use of user data for advertising purposes".

It is expected to issue its decision next month ordering Apple to halt its anti-competitive practice and will likely impose a fine too, the people said, making it the first regulatory veto against the ATT.

French antitrust fines can be as much as 10% of a company's global annual revenue.

"The decision is expected in the spring. But we can't comment any further," the regulator said.

Apple referred to a July 2023 statement in which it said it holds its advertising business to a higher standard of privacy than it requires of any other developer and that it had previously received strong support from the French regulator and privacy watchdog on the goal of the ATT.

The German antitrust authority earlier this month charged Apple with abusing its market power through its app tracking tool and giving itself preferential treatment, putting the company at risk of a hefty fine.



Meta Will Only Make Limited Changes to Pay-or-consent Model

People walk behind a logo of Meta Platforms company, during a conference in Mumbai, India, September 20, 2023. REUTERS/Francis Mascarenhas/File Photo
People walk behind a logo of Meta Platforms company, during a conference in Mumbai, India, September 20, 2023. REUTERS/Francis Mascarenhas/File Photo
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Meta Will Only Make Limited Changes to Pay-or-consent Model

People walk behind a logo of Meta Platforms company, during a conference in Mumbai, India, September 20, 2023. REUTERS/Francis Mascarenhas/File Photo
People walk behind a logo of Meta Platforms company, during a conference in Mumbai, India, September 20, 2023. REUTERS/Francis Mascarenhas/File Photo

Meta Platforms will only make limited changes to its pay-or-consent model rolled out in November 2024 and EU antitrust regulators cannot verify for now if the changes are sufficient to comply with an EU antitrust order, the European Commission said on Friday.

"With this in mind, we will consider the next steps, including recalling that continuous non-compliance could entail the application of periodic penalty payments running as of 27 June 2025, as indicated in the non-compliance decision," a Commission spokesperson said in an email.