Apple Faces German Antitrust Probe Into App Tracking Transparency

Germany's Federal Cartel Office, the Bundeskartellamt, has initiated proceedings against Apple to investigate whether its tracking rules and anti-tracking technology are anti-competitive and self-serving, according to a press release.

apple app tracking transparency ad
The proceeding announced today will review under competition law Apple's tracking rules and specifically its App Tracking Transparency Framework (ATT) in order to ascertain whether they are self-preferencing Apple or being an impediment to third-party apps. Andreas Mundt, President of the Bundeskartellamt, said of the proceeding:

"We welcome business models which use data carefully and give users choice as to how their data are used. A corporation like Apple which is in a position to unilaterally set rules for its ecosystem, in particular for its app store, should make pro-competitive rules. We have reason to doubt that this is the case when we see that Apple's rules apply to third parties, but not to Apple itself. This would allow Apple to preference its own offers or impede other companies. Our proceeding is largely based on the new competencies we received as part of the stricter abuse control rules regarding large digital companies which were introduced last year (Section 19a German Competition Act - GWB). On this basis, we are conducting or have already concluded proceedings against Google/Alphabet, Meta/Facebook and Amazon.

Introduced in April 2021 with the release of iOS 14.5 and iPadOS 14.5, Apple's App Tracking Transparency Framework requires that all apps on ‌iPhone‌ and ‌iPad‌ ask for the user's consent before tracking their activity across other apps. Apps that wish to track a user based on their device's unique advertising identifier can only do so if the user allows it when prompted.

Apple said the feature was designed to protect users and not to advantage the company. However, the Bundeskartellamt's preliminary findings indicate that while users can also restrict Apple from using their data for personalized advertising, Apple "is not subject to the new and additional rules of the App Tracking Transparency Framework."

The German competition regulator's proceeding is subsequent to an earlier proceeding initiated against Apple in June 2021 that was set up to look into claims of anti-competitive behavior related to the App Store, its products, and other services.

"In this context," said the regulator, "the possibilities for Apple itself to combine data across services and users' options regarding the processing of their data by Apple can be relevant, just like the question whether these rules may lead to a reduction of users' choice of apps financed through advertising."

Many advertisers have been impacted by ATT, but Facebook has been the most vocal and critical of the new change. Ever since Apple began to beta test the framework, Facebook accused Apple of impacting small businesses who rely on advertising as a means of keeping their doors open. Facebook also claimed that the framework was anti-competitive because it gives Apple an upper hand for running its own mobile advertising business on iOS devices.

An October 2021 report by the Financial Times claimed that ATT had resulted in a "windfall" for Apple's advertising business since its introduction. The report asserted that Apple's share of the mobile app advertising market tripled in the six months after the feature was introduced.

Apple has disputed suggestions that its ATT framework has unfairly benefitted the company to the detriment of third-parties. Earlier this year it commissioned a study into the impact of ATT that was conducted by Columbia Business School's Marketing Division. The study concluded that Apple was unlikely to have seen a significant financial benefit since the privacy feature launched, and that claims to the contrary were speculative and lacked supporting evidence.

Popular Stories

New Things Your iPhone Can Do in iOS 18

20 New Things Your iPhone Can Do in iOS 18.2

Monday December 16, 2024 8:55 am PST by
Apple released iOS 18.2 in the second week of December, bringing the second round of Apple Intelligence features to iPhone 15 Pro and iPhone 16 models. This update brings several major advancements to Apple's AI integration, including completely new image generation tools and a range of Visual Intelligence-based enhancements. Apple has added a handful of new non-AI related feature controls as...
iphone 16 apple intelligence

Apple Drops Plans for iPhone Hardware Subscription Service

Wednesday December 18, 2024 11:39 am PST by
Apple is no longer planning to launch a hardware subscription service that would let customers "subscribe" to get a new iPhone each year, reports Bloomberg's Mark Gurman. Gurman first shared rumors about Apple's work on a hardware subscription service back in 2022, and at the time, he said that Apple wanted to develop a simple system that would allow customers to pay a monthly fee to gain...
iPhone 17 Pro Dual Tone Feature 1

iPhone 17 Pro Rumored to Stick With 'Triangular' Camera Design

Wednesday December 18, 2024 2:36 am PST by
Contrary to recent reports, the iPhone 17 Pro will not feature a horizontal camera layout, according to the leaker known as "Instant Digital." In a new post on Weibo, the leaker said that a source has confirmed that while the appearance of the back of the iPhone 17 Pro has indeed changed, the layout of the three cameras is "still triangular," rather than the "horizontal bar spread on the...
elevation lab airtag battery

Your AirTag's Battery Will Last for Up to 10 Years With Elevation Lab's New TimeCapsule Enclosure

Wednesday December 18, 2024 10:05 am PST by
Elevation Lab today announced the launch of TimeCapsule, an innovative and simple solution for increasing the battery life of Apple's AirTag. Priced at $20, TimeCapsule is an AirTag enclosure that houses two AA batteries that offer 14x more battery capacity than the CR2032 battery that the AirTag runs on. It works by attaching the AirTag's upper housing to the built-in custom contact in the...
apple tv 4k yellow bg feature

New Apple TV Rumored to Launch Next Year With These Features

Tuesday December 17, 2024 9:02 am PST by
The current Apple TV 4K was released more than two years ago, so the streaming device is becoming due for a hardware upgrade soon. Fortunately, it was recently rumored that a new Apple TV will launch at some point next year. Below, we recap rumors about the next-generation Apple TV. Bloomberg's Mark Gurman last week reported that Apple has been working on its own combined Wi-Fi and...
blackmagic vision pro

Blackmagic Debuts $30K 3D Camera for Capturing Video for Vision Pro

Monday December 16, 2024 4:17 pm PST by
Blackmagic today announced that its URSA Cine Immersive camera is now available for pre-order, with deliveries set to start late in the first quarter of 2025. Blackmagic says that this is the world's first commercial camera system designed to capture 3D content for the Vision Pro. The URSA Cine Immersive camera was first introduced in June, but it has not been available for purchase until...
iPhone 17 Slim Feature

'iPhone 17 Air' With 'Major' Design Changes and 19-Inch MacBook Detailed in New Report

Sunday December 15, 2024 9:47 am PST by
Apple is planning a series of "major design" and "format changes" for iPhones over the next few years, according to The Wall Street Journal's Aaron Tilley and Yang Jie. The paywalled report published today corroborated the widely-rumored "iPhone 17 Air" with an "ultrathin" design that is thinner than current iPhone models. The report did not mention a specific measurement, but previous...
mac pro creativity

Apple Launched the Controversial 'Trashcan' Mac Pro 11 Years Ago Today

Thursday December 19, 2024 7:00 pm PST by
Apple launched the controversial "trashcan" Mac Pro eleven years ago today, introducing one of its most criticized designs that persisted through a period of widespread discontentment with the Mac lineup. The redesign took the Mac Pro in an entirely new direction, spearheaded by a polished aluminum cylindrical design that became unofficially dubbed the "trashcan" in the Mac community. All of ...

Top Rated Comments

AlexESP Avatar
33 months ago

Good. iOS needs to be more like macOS anyway. iOS is unnecessarily restrictive.
Ok, you think that, the majority of iPhone users don’t think so. Let Apple design iPhones just as they want.
Score: 27 Votes (Like | Disagree)
BootsWalking Avatar
33 months ago
Apple said the feature was designed to protect users and not to advantage the company. However, the Bundeskartellamt's preliminary findings indicate that while users can also restrict Apple from using their data for personalized advertising, Apple "is not subject to the new and additional rules of the App Tracking Transparency Framework."

I'm a huge fan of Apple's app tracking transparency but Apple has to abide by the same transparency rules they're imposing on third-parties, otherwise Germany is right about it being anti-competitive in favor of Apple.
Score: 19 Votes (Like | Disagree)
contacos Avatar
33 months ago
I mean if Apple does not track us, there is no point for them to add App Transparency to their own apps right? Kind of dumb. I am just waiting for them to rule against Apple basically for the fact that they do not track us unlike competitors. How ironic
Score: 19 Votes (Like | Disagree)
wanha Avatar
33 months ago
What Apple introduced with ATT was for users to opt IN to tracking.

Before ATT, tracking was the default setting and the user had very little choice or knowledge about who tracked you, how extensively, and with whom your data was shared.

Tracking, as such, isn't inherently wrong, but only as long as consumer opt IN to it.

Personally, for this one reason alone, I am a HUGE fan of ATT.
Score: 14 Votes (Like | Disagree)
T Coma Avatar
33 months ago
Lol @ state “concern” about tracking. Esp. any first world technocracy.

“Ja, too self serving, Herr Apfel. Ze government is ze only sing which shall be served by tracking ze citizen, ja?”
Score: 10 Votes (Like | Disagree)
Danfango Avatar
33 months ago
Only Germany could come up with something quite as ironic considering their surveillance legislation history.
Score: 7 Votes (Like | Disagree)