Apple’s App Tracking Transparency Faces German Antitrust Scrutiny
Apple’s App Tracking Transparency (ATT) feature, designed to enhance user privacy by allowing individuals to control how apps track their data, is currently under investigation by Germany’s Federal Cartel Office (Bundeskartellamt). The regulator is assessing whether ATT’s implementation may constitute anti-competitive behavior, particularly concerning the differential treatment between Apple’s own applications and those of third-party developers.
Background on App Tracking Transparency
Introduced with iOS 14.5 in April 2021, ATT requires apps to obtain explicit user consent before tracking their activities across other companies’ apps and websites. This move was lauded by privacy advocates but faced criticism from the advertising industry, which relies heavily on data collection for targeted advertising. Companies like Facebook reported significant revenue declines attributed to the widespread adoption of ATT by users opting out of tracking.
German Antitrust Investigation
The Bundeskartellamt initiated its investigation into Apple’s ATT in June 2022, focusing on whether the feature unfairly disadvantages third-party developers. The primary concern is that while third-party apps must display prompts requesting user permission for tracking, Apple’s own apps are not subject to the same requirements. This discrepancy could potentially give Apple an undue advantage in data collection and personalized advertising.
Andreas Mundt, President of the Bundeskartellamt, stated, We welcome business models which use data carefully and give users choice as to how their data are used. A corporation like Apple, which is in a position to unilaterally set rules for its ecosystem, should make pro-competitive rules. He further noted that there is reason to doubt that Apple’s rules apply equally to all parties, suggesting that Apple may be giving preference to its own services.
Apple’s Response
Apple has defended its ATT framework, emphasizing its commitment to user privacy and equal treatment of all developers. An Apple spokesperson commented, Privacy has always been at the center of our products and features. At Apple, we believe that a user’s data belongs to them, and they should get to decide whether to share their data and with whom.
The company asserts that ATT applies uniformly to all developers, including Apple itself, and that its own apps do not track users across other companies’ apps and websites. Apple also highlighted that ATT does not prevent companies from advertising or restrict their use of first-party data obtained with user consent.
Implications for the Advertising Industry
The introduction of ATT has had a profound impact on the advertising industry. Reports indicate that advertisers have experienced a 15% to 20% drop in revenue due to the reduced ability to deliver targeted ads. This decline has been particularly challenging for smaller developers and publishers who rely on advertising revenue to sustain their businesses.
In response to these challenges, nine industry associations in Germany, representing tech giants and online publishers, filed a complaint with the Bundeskartellamt in April 2021. The complaint alleged that ATT could lead to a 60% fall in advertising revenue for app developers, making it harder for marketers to collect data required for targeted ads. Thomas Hoppner of law firm Hausfeld, representing the group, stated, Consumers will be harmed by higher transaction costs. If the relevance of ads decreases, consumers will have to spend more time searching to find offerings that are relevant to them.
European Regulatory Landscape
Germany is not alone in scrutinizing Apple’s ATT. In March 2025, France’s competition authority fined Apple $162.4 million for implementing ATT between 2021 and 2023, stating that the way it was implemented was neither necessary nor proportionate to Apple’s stated objective of protecting personal data. However, France did not require Apple to make changes to the ATT feature.
Italy is also expected to rule on the issue by the end of 2025, indicating a broader European concern over the potential anti-competitive effects of ATT.
Potential Outcomes and Industry Reactions
The outcome of the Bundeskartellamt’s investigation could have significant implications for Apple’s operations in Germany and potentially across Europe. If the regulator finds that ATT violates antitrust laws, Apple may be required to modify the feature’s implementation to ensure equal treatment of all apps. This could involve changes to how consent prompts are presented or extending the same requirements to Apple’s own apps.
The advertising industry continues to adapt to the changes brought about by ATT. Some companies are exploring alternative methods of data collection that comply with privacy regulations, while others are investing in contextual advertising that does not rely on user tracking.
Conclusion
Apple’s App Tracking Transparency feature represents a significant shift towards user privacy in the digital landscape. However, its implementation has raised concerns about potential anti-competitive behavior, particularly regarding the differential treatment of Apple’s apps compared to those of third-party developers. The ongoing investigation by Germany’s Federal Cartel Office will be pivotal in determining whether ATT aligns with antitrust regulations and could set a precedent for how privacy features are implemented by dominant tech companies in the future.
