German anti-trust watchdog has been researching Apple’s APP privacy framework since 2022. On Thursday, releasing preliminary findings from the probe, Bundeskartellamt (FCO) said it suspects iPhone manufacturers are not treating third-party app developers equally as the law requires them .
Anti-Trust Watchdog said it believes Apple’s actions could be self-rated. Apple was banned from preferring its own services and products in Germany in April 2023. In April 2023, it was subject to special abuse control aimed at regulating Big Tech’s market power.
Under the wider Pan-EU Digital Markets Act (DMA), Apple is also prohibited from self-presenting several other core platform services, such as iOS and the App Store.
The current app privacy issues being investigated are related to Apple’s App Tracking Transparency Framework (ATTF). This allows iOS users to instruct third-party apps not to track their use of ad targeting.
The problem is the difference in how Apple treats tracking permissions requested by third parties compared to the unique tracking of IOS users in the case of FCOs.
“[T]His strict requirements under the ATTF apply to Apple itself only to third-party app providers,” FCO wrote in a press release. “In Bundeskartellamt’s preliminary view, this may be prohibited under the Special Abuse Control Provisions of Section 19A(2) of the German Competition Law (GWB) and the General Abuse Control Provisions of Article 102 TFEU. [Treaty on the Functioning of the European Union]. ”
“The consent dialogue between Apple’s own app and third-party apps is significantly different,” he continues. “Current designs, particularly the language of interactions in Apple’s own apps, are more likely to agree than those in the ATTF dialogue of third-party apps.”
The FCO says three aspects of the framework raise competitive concerns.
First, Apple defines tracking “in a way that covers data processing for advertising purposes between companies,” but according to FCO, the same “strict” ATTF rules are “user data across the ecosystem.” It does not cover Apple’s own practice of combining it. App Store, Apple ID, and Connected Devices – and use them for advertising purposes.
Second, it highlights how third-party apps display up to four consecutive consent conversations under ATTF, while Apple apps show up to two. Furthermore, in the FCO evaluation, pop-ups around Apple’s apps do not refer to “Apple’s processing of user data (called first-party tracking) across the service (known as first-party tracking).”
Finally, Watchdog believes that the design of tracking consent dialogues on iOS is treated unevenly. According to FCO, Apple’s interactions are designed to encourage users to process data, while interactions for third-party apps lead users to reject them.
“Apple runs a comprehensive digital ecosystem,” commented in a statement. […] Provides Apple with extensive access to user data related to advertising. Personalized ads are also very commercially important for other companies who want to offer free apps. […] However, ATTF makes it much more difficult for competing app publishers to access user data related to their ads. ”
Apple spokesman Tom Parker emailed a statement defending how the company works. The prompt is consistent for all developers, including Apple, and strongly supports this feature from consumers, privacy advocates and data protection authorities around the world,” Apple wrote.
“The user firmly believes that when data is shared, they need to control with whom, be constructively involved with federal cartel offices, and ensure that users continue to have transparency and control over their data. “We’re doing that,” the company said.
Tech giants now have the opportunity to respond to FCO survey results.
Developers complain that Apple has double standards in relation to its own apps and services and third parties. The company’s treatment of third parties is also under DMA’s scrutiny. The European Commission issued one preliminary violation last summer regarding how Apple operates the App Store.
It is worth noting that Apple is suing for the designation of an FCO, and is trying to overturn the ability of watchdogs to wield special abusers. The outcome of that appeal is pending a court ruling by March 18, 2025.
Meanwhile, Powers has been applied to Apple, and FCO’s actions highlight how Apple and a few other designated tech giants are dealing with major competitive interventions in multiple aspects in Europe .
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