In recent developments, Apple has come under scrutiny in Brazil over its App Tracking Transparency (ATT) feature, following a formal complaint by Meta. The Brazilian Administrative Council for Economic Defense (CADE) has commenced an investigation into allegations that Apple’s implementation of ATT may constitute anti-competitive behavior.
Background on App Tracking Transparency
Introduced in 2021 with the release of iOS 14.5, Apple’s ATT feature mandates that third-party applications obtain explicit user consent before tracking their activities across other apps and websites. This initiative was positioned as a significant advancement in user privacy, granting individuals greater control over their personal data. However, the feature has been met with criticism from various companies, particularly those whose business models heavily rely on targeted advertising.
Meta’s Allegations
Meta, the parent company of Facebook and Instagram, has been vocal in its opposition to ATT. The company contends that while third-party apps are required to seek user permission for data tracking, Apple’s own applications are not subjected to the same requirements. This, Meta argues, creates an uneven playing field, potentially giving Apple an unfair advantage in data collection and usage.
According to a report by the Brazilian newspaper O Globo, CADE has acknowledged the presence of evidence suggesting that Apple collects and processes information from its users under more favorable conditions than those offered to third parties. This acknowledgment has prompted the regulator to delve deeper into the matter to assess the validity of these claims.
Implications for the Advertising Industry
The introduction of ATT has had a profound impact on the digital advertising landscape. Companies like Meta, whose revenue streams are heavily dependent on personalized advertising, have reported significant challenges in ad targeting and measurement. The inability to track user behavior across apps and websites has led to decreased ad effectiveness and, consequently, a decline in advertising revenue.
Meta has estimated that the implementation of ATT could result in a loss of approximately $10 billion in advertising revenue. This substantial financial impact underscores the critical nature of the ongoing investigation and its potential ramifications for the broader industry.
Apple’s Position
Apple has consistently defended ATT as a measure designed to enhance user privacy and transparency. The company asserts that the feature empowers users to make informed decisions about their data and aligns with its longstanding commitment to privacy. In response to the investigation, Apple has stated that it will cooperate fully with CADE and provide any necessary information to assist in the inquiry.
Regulatory Landscape in Brazil
This investigation is part of a broader trend of increased regulatory scrutiny of major technology companies in Brazil. In recent years, Apple has faced multiple inquiries and legal actions in the country. For instance, in January 2025, Apple and Google were fined R$19 million (approximately US$3.1 million) for allowing the app FaceApp to collect user data without proper consent. Additionally, in November 2024, CADE ruled that Apple must lift restrictions on payment methods for in-app purchases, following a complaint by e-commerce giant MercadoLibre.
Potential Outcomes
While the current investigation is in its preliminary stages, several potential outcomes could emerge:
1. Regulatory Action: If CADE determines that Apple’s implementation of ATT constitutes anti-competitive behavior, it could impose fines or mandate changes to the feature’s implementation to ensure a level playing field for all developers.
2. Policy Revisions: Apple may choose to proactively revise its ATT policies to address the concerns raised by Meta and other stakeholders, thereby mitigating potential regulatory action.
3. Industry-Wide Implications: A ruling against Apple could set a precedent for how privacy features are implemented by other tech companies, potentially leading to broader changes in industry practices.
Global Context
The investigation in Brazil is not an isolated incident. Globally, Apple has faced similar challenges regarding ATT. In France, the company was fined €1.1 billion (approximately US$1.2 billion) for alleged anti-competitive practices related to its advertising policies. These international cases highlight the growing tension between tech companies’ privacy initiatives and the interests of advertisers and developers.
Conclusion
The investigation by Brazil’s CADE into Apple’s App Tracking Transparency feature underscores the complex interplay between user privacy, corporate practices, and regulatory oversight. As the digital landscape continues to evolve, finding a balance that respects user privacy while fostering a competitive and fair market remains a critical challenge. Stakeholders across the industry will be closely monitoring the developments of this case, as its outcomes could have far-reaching implications for privacy policies and competitive practices worldwide.
