Apple Hit with $162.4 Million Fine by French Regulators

Apple has been fined 150 million euros by French antitrust regulators for allegedly abusing its dominant position in mobile app advertising through its privacy control tool. This penalty marks the first action taken by any antitrust authority regarding Apple's App Tracking Transparency (ATT) feature. The fine comes a year after the European Union imposed a 1.8 billion euro fine on Apple for hindering competing music streaming services on its App Store.

Benoit Coeur, head of the French Competition Authority, downplayed concerns about potential retaliation from U.S. President Donald Trump, who has threatened to impose fines on EU countries penalizing U.S. companies. "We apply competition law in an apolitical manner," Coeur stated at a press conference. He noted that U.S. authorities are also expected to enforce antitrust laws on major digital platforms as strictly as their predecessors, suggesting no significant controversy between the U.S. and Europe regarding antitrust enforcement.

The ATT tool allows iPhone and iPad users to control which apps can track their activities. However, digital advertising and mobile gaming companies have argued that it complicates and increases the cost of advertising on Apple's platforms. In response to the ruling, Apple expressed disappointment but noted that the French Competition Authority did not mandate any specific changes to the ATT.

Coeur explained that while the regulator did not specify how Apple should modify its app, it is the company's responsibility to ensure compliance with the ruling. The process of compliance may take time, as Apple is also awaiting decisions from regulators in Germany, Italy, Poland, and Romania, who are investigating the ATT tool. The French case, which examined the period from 2021 to 2023, was initiated following complaints from various associations representing online advertisers, publishers, and internet networks, who accused Apple of misusing its market power.

The regulator stated that while the goal of the ATT is commendable, its implementation is neither necessary nor proportionate to Apple's stated aim of protecting personal data. The privacy tool has particularly disadvantaged smaller publishers, who rely heavily on third-party data collection to sustain their businesses. The organizations that filed complaints with the French authority, including Alliance Digitale, the Syndicat des Regies Internet (SRI), the Union des Entreprises de Conseil et d'Achat Media (Udecam), and the Groupement des éditeurs de Services en Ligne, hailed the decision as a significant victory for advertisers.