Apple Agrees to Change App Data Consent Rules Following EU Competition Probe
Apple's App Tracking Transparency Changes and EU Competition Investigation
Background of the Investigation
DUESSELDORF, Germany, Aug 17 (Reuters) - Apple will change rules governing how app developers can use personal data for targeted advertising on iPhones and iPads, Germany's competition authority said on Monday, closing a years-long investigation.
The Federal Cartel Office, or FCO, found that Apple's App Tracking Transparency framework gave its own apps more favourable consent prompts than those of third-party developers, potentially breaching competition rules.
Key Commitments and Implementation Timeline
Implementation Period and Oversight
• Apple has four months to implement the changes after the decision is served. Commitments run for seven years and will be monitored by a trustee.
Changes to Consent Pop-Ups
• Under the commitments, consent pop-ups for third-party apps must be redesigned to remove discouraging language and symbols, and made visually and linguistically neutral.
Apple's Response and Impact on Developers
Apple's Statement
• "While we believe the current ATT prompt provides a clear, easy-to-understand and effective way to keep users in control of their data – an opinion shared by the German data protection authorities – we have agreed to make changes to the text and formatting of the prompt at the FCO's request," Apple said, adding that with these commitments, it can continue to provide the tool in Europe. The changes will apply in almost all European Union countries.
Implications for Third-Party Developers
• Developers of third-party apps, including Facebook parent Meta Platforms, aim for accurate user data so that targeted adverts can be displayed on devices. These generate more revenue than broader campaigns.
Previous Fines and Penalties
Fines in France and Italy
• France and Italy have already fined Apple €150 million and €98.6 million, respectively, over the ATT framework.
Reporting Credits
(Reporting by Matthias Inverardi and Hakan Ersen, writing by Thomas Seythal; editing by Matthias Williams)