Since 2022, Germany’s antitrust authority has been delving into Apple’s app privacy framework, investigating if the tech giant is giving itself an unfair advantage over third-party app developers. Recent findings by the Federal Cartel Office (Bundeskartellamt) suggest that Apple might not be adhering to the legal requirement to treat all app developers equally.
Apple, under Germany’s new laws aimed at curbing big tech’s market dominance, is prohibited from self-preferencing since April 2023. This rule is reinforced by the broader European Union’s Digital Markets Act, which bars Apple from favoring its services on platforms like iOS and the App Store.
The crux of the investigation involves Apple’s App Tracking Transparency framework (ATTF), which allows users to block third-party apps from tracking their online behavior for advertising. The Federal Cartel Office suspects that Apple might be applying these tracking permissions more leniently to its apps compared to those from external developers.
A significant point raised is the application of ATTF standards. The FCO noted that the stringent rules seem to apply only to third-party applications and not to Apple’s practices. According to them, this could be in violation of Germany’s special abuse control measures and general European Union competition laws.
The watchdog also identified inconsistencies in Apple’s consent dialogues. Apple’s own apps often require fewer pop-up permissions compared to those of third-party apps, influencing users towards granting Apple data access more readily.
The FCO highlights three key concerns with Apple’s privacy framework. First, while tracking by third parties is closely regulated under ATTF, Apple’s data aggregation practices from its vast ecosystem, which also serve advertising purposes, do not seem as restricted. Second, Apple apps typically show fewer consent dialogues compared to third-party apps, further highlighting a potential preferential treatment. Lastly, the design of Apple’s consent dialogs seems intended to secure user permission more easily than those for external apps.
Andreas Mundt, president of the antitrust body, remarked on Apple’s extensive access to user data, which lends a competitive edge in advertising. He pointed out that Apple’s data practices make it tougher for competing developers to participate equally in the App Store, directly impacting those offering free apps.
In response, Apple’s spokesperson, Tom Parker, defended the company’s practices, emphasizing that their App Tracking Transparency empowers users by providing a uniform and clear prompt regarding tracking requests across the board. Apple maintains that it values user privacy, allowing them to control their data sharing.
Interestingly, this situation is not unique. Developers have long alleged that Apple imposes double standards, benefiting its applications and services while restricting third parties. The European Commission is already examining Apple’s App Store operations for potential infringements.
Currently, Apple is appealing the watchdog’s authority to exercise these abuse control powers, with a court decision expected by March 18, 2025. Despite the pending appeal, Apple is still subject to these regulations, highlighting the broader challenges major tech companies face as Europe tightens its competition rules.
