Germany’s Antitrust Authority Takes Action Against Apple Over Market Dominance
BERLIN (Reuters) – The German antitrust authority has formally accused Apple of exploiting its market dominance through its app tracking system, potentially giving itself an unfair advantage. If the company does not adjust its business practices, it could face daily fines.
Following a three-year investigation, the Federal Cartel Office has raised concerns over Apple’s App Tracking Transparency (ATT) feature, which enables users to restrict advertisers from tracking their activities across different applications.
While Apple maintains that this feature enhances user privacy, critics—including Meta Platforms, app developers, and startups reliant on advertising revenue—argue that it places them at a disadvantage.
Impact on Market Competition
“The App Tracking Transparency framework significantly limits competing app developers’ access to user data necessary for targeted advertising,” said Andreas Mundt, president of the Federal Cartel Office.
In response, Apple defended its policies in a statement to Reuters, emphasizing that it applies stricter standards to itself than it does to third-party developers.
“We remain committed to engaging with the Federal Cartel Office to ensure that users retain transparency and control over their data,” Apple stated.
Potential Consequences for Apple
Apple must address the issues outlined in the German regulator’s report or face legal proceedings and potential daily fines. A final decision could be reached by the end of this year or in early 2025.
This case stems from complaints filed by various industry groups, including publishers, broadcasters, advertisers, and ad-tech firms.
“These charges mark a significant development. Apple’s policies have created unnecessary barriers within its ecosystem, leading to reduced choices, higher costs for app developers, and increased exposure to ad fraud, all while strengthening Apple’s revenue from services,” said Thomas Höppner, a partner at law firm Hausfeld, which represents the complainants.
“For the first time, it has been made clear that Apple cannot use privacy concerns as a justification for restricting competition in its favor,” he added.
Under Germany’s competition laws, companies found guilty of anti-competitive practices could face fines of up to 10% of their annual revenue.
(Reporting by Rachel More in Berlin and Foo Yun Chee in Brussels, edited by Thomas Seythal and Elaine Hardcastle.)
