Apple faces likely French antitrust fine for privacy tool, sources say

Apple Faces Potential Antitrust Fine for Privacy Tool in France

By Foo Yun Chee

BRUSSELS (Reuters) - Apple is facing a likely antitrust fine as the French regulator prepares to rule next month on the company's privacy control tool, two people with direct knowledge of the matter said.

Called App Tracking Transparency (ATT), the feature allows iPhone users to decide which apps can track user activity, helping companies like Meta Platforms' Facebook and online advertisers tailor ads to users and measure their impact.

Digital advertising and mobile gaming companies including Facebook say it has made it more expensive and difficult for brands to advertise on Apple's platforms.

The French regulator charged Apple in 2023, saying it was concerned that the company might "abuse its dominant position by implementing discriminatory, non-objective and non-transparent conditions for the use of user data for advertising purposes".

It is expected to issue its decision next month ordering Apple to halt its anti-competitive practice and will likely impose a fine too, the people said, making it the first regulatory veto against the ATT.

French antitrust fines can be as much as 10% of a company's global annual revenue.

"The decision is expected in the spring. But we can't comment any further," the regulator said.

Apple referred to a July 2023 statement in which it said it holds its advertising business to a higher standard of privacy than it requires of any other developer and that it had previously received strong support from the French regulator and privacy watchdog on the goal of the ATT.

The German antitrust authority earlier this month charged Apple with abusing its market power through its app tracking tool and giving itself preferential treatment, putting the company at risk of a hefty fine.

(Reporting by Foo Yun Chee; Editing by Kirsten Donovan)