Apple faces $162 million fine in EU over a privacy tool

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France’s Competition Authority has fined Apple €150 million ($162 million) for how it implemented its App Tracking Transparency (ATT) system. 

As reported by Reuters, the regulator found that Apple used its control over the iOS platform to unfairly disadvantage third-party developers and advertising companies while making it harder for users to opt out of tracking.

The ATT framework, introduced in 2021 with iOS 14.5, was designed to give users more control over their privacy. 

It requires apps to ask permission before tracking users across different apps and websites. If a user declines, the app loses access to the Identifier for Advertisers (IDFA), a key tool for showing personalized ads. 

However, the French regulator determined that Apple’s implementation was biased. The authority explained that while ATT itself is not anti-competitive, the way Apple deployed it created an uneven playing field. 

The system made it difficult for third-party apps to obtain user consent, adding unnecessary hurdles. 

At the same time, Apple’s own advertising services, which are built directly into iOS, were not subject to these same restrictions. 

This raised concerns that Apple was using its control over iOS to favor its own business interests while limiting competition. The ruling highlighted the economic impact on developers and advertisers. 

Many free apps rely on targeted advertising for revenue, and the regulator found that Apple’s approach to ATT harmed smaller developers the most. 

Without access to user data, these companies struggled to generate ad revenue, while Apple’s own ads continued to thrive.

The investigation began in 2021 after complaints from French advertising groups. Although the regulator initially chose not to impose emergency restrictions, it later conducted a full investigation. 

The final decision not only requires Apple to pay the fine but also to publish the ruling on its website for seven days.

Apple defended itself, stating that ATT provides users with a clear and fair choice about tracking. 

The company also noted that the regulator did not require any specific changes to the system. While Apple expressed disappointment, it did not say whether it would appeal the decision.

Other European regulators, including those in Germany, Italy, Romania, and Poland, are also investigating ATT over similar concerns.

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