Potential Antitrust Sanctions Against Apple in France
An illustration of an App Tracking Transparency notification
In March, France is poised to impose an antitrust fine on Apple as the nation’s consumer protection agency prepares to determine whether the tech giant misused its influence regarding App Tracking Transparency.
The French Competition Authority (Autorité de la Concurrence) initiated an investigation into Apple’s practices surrounding App Tracking Transparency in July 2023. Following a thorough inquiry that has spanned over 18 months, a resolution is anticipated soon.
According to two apple-vision-pro-facing-production-trouble-heres-what-you-need-to-know/” title=”Is the Apple Vision Pro Facing Production Trouble? Here’s What You Need to Know!”>sources familiar with the proceedings who spoke to Reuters, a definitive ruling from the regulator is expected by March. “We are looking at announcing our decision during spring,” said a representative from the authority, though they refrained from providing additional details.
This ruling is likely to be supplemented by an antitrust penalty; however, the specific amount remains uncertain. Notably, fines issued by French authorities can reach up to 10% of a company’s global earnings, potentially resulting in billions for Apple.
Background of the Investigation
The investigation dates back to 2021 when initial assessments revealed no wrongdoing related to ATT prior its official launch. Isabelle de Silva, head of the authority at that time, expressed hesitance about intervening merely due to perceived adverse effects on companies without clear instances of discriminatory behavior.
However, this stance shifted two years later following complaints raised regarding Apple’s control over app sales and distribution within its ecosystem. The findings suggested that Apple may have engaged in anticompetitive behavior through non-transparent and discriminatory terms affecting how user data is utilized for advertising endeavors.
While it was not disclosed who filed these complaints specifically, they likely tie back to grievances submitted in 2020 by four online advertising associations: IAB France, MMAF, UDECAM and SRI. These groups contended that Apple’s introduction of ATT was not compatible with EU privacy regulations.
Apple’s Response and Broader Implications
At the onset of this probe’s announcement by French officials, Apple responded firmly through statements asserting their commitment towards maintaining higher privacy standards than other developers in their advertising platform—specifically emphasizing obtaining explicit user consent before delivering personalized advertisements.
Simultaneously ongoing are discussions within German courts regarding whether additional regulatory oversight should be enforced upon Apple aimed at fostering competition within their market space—a legal tussle initiated earlier this year which mirrors issues faced with Germany’s Bundeskartellamt concerning ATT dating back as early as 2022.