Apple’s privacy protection policies are under legal scrutiny in the European Union, with German regulators challenging whether Apple’s privacy shield is against EU laws. The issue is Apple’s App Tracking Transparency (ATT) policy, which limits third-party tracking and data gathering without user permission. Regulators claim that the feature would unfairly put competitors at a disadvantage while enhancing Apple’s own ad ecosystem.
This is not the first instance of Apple’s privacy policies coming under fire. Meta (previously Facebook) previously criticized ATT, warning that it had the potential to result in a whopping $10 billion loss in revenue in 2022. The social media giant accused Apple of anti-competitive practices, claiming that the system disproportionately harms businesses that are dependent on targeted advertising while benefiting Apple’s ad business.
Germany’s Federal Cartel Office (FCO) is now reviewing whether Apple’s actions are in line with the EU’s Digital Markets Act (DMA) and General Data Protection Regulation (GDPR). In case of non-compliance, Apple may have to pay substantial fines and alter its policies according to European regulations.
As regulatory pressure builds, the case has the potential to establish a huge precedent for EU digital privacy legislation. With Big Tech facing greater scrutiny, the fight between competition policy and privacy rights will determine the future of the digital ad industry.
