France's antitrust watchdog fines Apple for problems with App Tracking Transparency

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PARIS (AP) — France’s antitrust watchdog fined Apple 150 million euros ($162 million) on Monday over a privacy feature protecting users from apps snooping on them because its introduction resulted in abuse of competition law.

The French Competition Authority said the aim of Apple’s App Tracking Transparency (ATT) requiring iPhone and iPad apps to ask users for permission before tracking them was not in itself open to criticism.

But it ruled that the “way in which it was implemented was neither necessary nor proportionate to Apple’s stated objective of protecting personal data.”

Apple rolled out ATT starting in April 2021 as part of an update to the operating system powering the iPhone and iPad. The feature forces apps to obtain permission before collecting data to target users with personalized ads. While the feature was designed to tighten up privacy, it faced criticism from Big Tech rivals that it would make it harder for smaller apps to survive without charging consumers.

The fine, punishing Apple for abuse of its dominant position in mobile app distribution, covers the period from April 2021 to July 2023. But the amount is a pittance for the iPhone maker, which earned $124 billion in revenue in the final three months of last year.

The watchdog said the feature's rollout resulted in users being barraged by pop-ups from third-party apps requesting their consent. It bemoaned how the proliferation of these consent windows made it "excessively complex" for app users to navigate the iOS environment.

It also questioned the system’s neutrality, saying it penalized the smallest publishers, which depend to a large extent on the collection of third-party data to finance their activity.

Apple said in a statement that ATT gives users more privacy control “through a required, clear, and easy-to-understand prompt about one thing: tracking.”

“That prompt is consistent for all developers, including Apple, and we have received strong support for this feature from consumers, privacy advocates, and data protection authorities around the world,” the company said. "While we are disappointed with today’s decision, the French Competition Authority (FCA) has not required any specific changes to ATT.”

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AP Business Writer Kelvin Chan contributed from London.