The German antitrust authority has accused Apple of controversial behavior, alleging that the tech giant has been abusing its market power through its app tracking tool and giving itself preferential treatment. This accusation could potentially lead to daily fines for Apple if it does not change its business practices. The charges stem from a three-year investigation conducted by the Federal Cartel Office into Apple’s App Tracking Transparency feature, which enables users to block advertisers from tracking them across various applications.
Although Apple has argued that the feature empowers users to control their privacy, it has faced criticism from Meta Platforms, app developers, and startups whose business models heavily rely on advertising tracking. Andreas Mundt, the president of the cartel office, expressed concerns about how the app tracking tool complicates access to user data essential for advertising by competing app publishers.
In response to the charges, Apple defended the feature in a statement to Reuters, asserting that it upholds a higher standard for itself than it imposes on third-party developers. The company emphasized its commitment to working with the Federal Cartel Office to ensure that users maintain transparency and control over their data.
Apple now faces the task of addressing the issues outlined in the German charge sheet to avoid further legal action and potential daily fines. A final ruling on the matter is anticipated to arrive either later this year or more likely in the following year. The investigation was triggered by complaints from associations representing publishers, broadcasters, advertisers, agencies, and ad tech firms.
According to Thomas Höppner, a partner at the law firm Hausfeld representing the complainants, the charges mark a significant turning point. He highlighted how Apple’s actions had created a sense of artificial opacity within its ecosystem, resulting in reduced choice, increased app costs, vulnerability to ad fraud, and boosted revenues for Apple’s services. Höppner stressed that Apple cannot exploit privacy arguments to stifle competition in its favor.
Any companies found guilty of violating Germany’s antitrust regulations could face fines of up to 10% of their annual turnover. The investigation and charges were reported by Rachel More in Berlin and Foo Yun Chee in Brussels, with editing by Thomas Seythal and Elaine Hardcastle.
