On Monday, French antitrust regulators imposed a fine of €150 million (around $162.4 million) on Apple for exploiting its leading position in mobile app advertising via the App Tracking Transparency (ATT) mechanism. This fine is the first of its kind levied by any antitrust entity concerning the ATT, occurring just a year after the European Union sanctioned Apple with a €1.8 billion penalty for obstructing competitor music streaming services in its App Store.
Benoit Coeure, the head of the French Competition Authority, brushed aside worries about possible backlash from U.S. officials, including then-President Donald Trump, who had warned of penalties against European nations that punish American businesses. “Our enforcement of competition law is impartial and not influenced by politics,” Coeure asserted during a press briefing.
Coeure mentioned that U.S. regulators are likely to uphold antitrust legislation against major digital platforms with the same intensity as their predecessors, implying no substantial discord between the U.S. and Europe regarding legal enforcement in this domain.
The ATT mechanism grants iPhone and iPad users the power to manage which applications can monitor their activities. However, companies in digital advertising and mobile gaming have contended that this feature complicates matters and raises expenses for brands looking to advertise on Apple’s ecosystems.
In reaction to the decision, Apple expressed regret but pointed out that the French Competition Authority did not require specific modifications to the ATT. Coeure clarified that while the regulatory body had not specified how Apple should revise its application, the firm is accountable for adhering to the ruling.
The adherence process may require some time, as Apple is waiting for determinations from regulators in Germany, Italy, Poland, and Romania, all of whom are examining the ATT mechanism. The French case, covering the period from 2021 to 2023, stemmed from complaints issued by multiple associations representing online advertisers, publishers, and internet networks who claimed that Apple was misusing its market power.
Although the regulator noted that the aim of the ATT is not inherently objectionable, it determined that its execution is neither essential nor proportionate to Apple’s goals of safeguarding personal data. Furthermore, the privacy mechanism was said to “particularly disadvantage smaller publishers,” who significantly depend on gathering third-party data to sustain their operations.
Groups such as Alliance Digitale, the Syndicat des Regies Internet (SRI), the Union des Entreprises de Conseil et d’Achat Média (Udecam), and the Groupement des Éditeurs de Services en Ligne, which filed complaints with the French authority, celebrated the ruling as a major win for advertisers.