Apple faces $2.7B lawsuit over App Tracking Transparency
What's the story
Apple is facing a £2 billion ($2.7 billion) lawsuit over its App Tracking Transparency (ATT) policy. The suit was filed by a former official of the UK's Competition and Markets Authority on behalf of app developers. The plaintiffs allege that Apple has imposed stricter regulations on third-party developers than its own services, giving an unfair advantage to the company's advertising ecosystem.
Feature scrutiny
Apple's ATT under scrutiny in Europe
Launched in 2021, ATT was designed to give users more control over how their activity is tracked by app developers across different platforms.
However, the feature has come under scrutiny from regulators across Europe.
Despite Apple's claim that it is "bound by the exact same requirements as all developers," Germany's Federal Cartel Office found last month that Apple prioritizes its own apps over those of external developers.
Accusations
Apple to change how ATT works in EU
The Federal Cartel Office said that Apple's ATT pop-ups for its services "had the potential to encourage users to give their consent, whereas they had the potential to discourage consent for third-party apps."
In light of these findings, Apple agreed to make some changes to how ATT works in the European Union.
This comes after the French Competition Authority fined Apple €150 million ($175 million) over ATT last year.
Legal leadership
Lawsuit filed in London
The new lawsuit against Apple is led by Ann Pope, a former senior official with Britain's Competition and Markets Authority.
She said Apple's policy "resulted in very significant harm to businesses that depend on Apple as a gatekeeper."
The suit was filed at London's Competition Appeal Tribunal on Thursday, accusing Apple of abusing its power to impose greater restrictions on third parties.
Regulatory probes
Apple agreed to change rules in Germany
Apple's ATT feature has been investigated across Europe, especially in Germany.
Last month, Apple agreed to change rules on how app developers can use personal data for targeted advertising.
The German competition authority had accused Apple of abusing its market power after Facebook-owner Meta and others raised concerns about the tool impacting their business models reliant on advertising tracking.
Regulators in France, Italy, and Poland have also probed Apple's ATT framework.