The German antitrust authority has charged Apple with abusing its market power through its App Tracking Transparency feature, a move that could result in daily fines if the company does not change its business practices.
The charges follow a three-year investigation by the Federal Cartel Office into Apple’s tool, which allows users to block advertisers from tracking them across different applications.
The U.S. tech company has defended the feature as a way to give users control over their privacy. However, the tool has drawn criticism from Meta Platforms, app developers, and startups that rely on advertising tracking.
“The ATTF (app tracking tool) makes it far more difficult for competing app publishers to access the user data relevant for advertising,” Andreas Mundt, president of the cartel office, said in a statement.
Apple responded in an emailed statement, saying it “holds itself to a higher standard than it requires of any third-party developer” and will “continue to constructively engage with the Federal Cartel Office to ensure users continue to have transparency and control over their data.” The company will need to address the concerns outlined in the charge sheet or risk further proceedings and daily fines if it does not comply by the time of a final ruling, expected next year.
The case was initiated by complaints from associations representing publishers, broadcasters, advertisers, agencies, and ad tech firms.
Thomas Höppner, a partner at law firm Hausfeld, which represents the complainants, said, “Today’s charges are groundbreaking. Apple’s measures had created an artificial opacity in its ecosystem that led to less choice, higher costs for apps, and less protection against ad fraud, all while boosting Apple’s revenues from services.”
Companies found guilty of violating Germany’s antitrust laws can face fines of up to 10% of their annual revenue.
