Apple's new App Tracking Transparency feature , which was introduced with iOS 14.5 , has been the center of discussion since the company introduced it. Thanks to this feature, apps ask users for permission to track their activity and target them with ads . Many have criticized the new feature. One of the most recent actions against Apple and the App Tracking Transparency feature is a lawsuit filed in Germany that accuses the tech company of violating antitrust laws. The lawsuit was filed by some of the country's largest technology and advertising companies, as well as media outlets. A similar lawsuit was filed in France in March .
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The companies behind the lawsuit say app developers could see ad revenue drop by 60%, while consumers will pay more for apps.
The Financial Times reports:
“A group including Germany's largest media, technology and advertising companies has accused Apple of violating antitrust laws as it introduces changes to iPhone privacy settings that they say will harm the advertising market.
Nine industry associations filed the complaint on Monday with Germany's regulator […]
The complaint predicted a 60% drop in advertising revenue for app developers as the changes make it harder for third parties to collect the data they need to place ads“.
As mentioned above, the companies behind the lawsuit also mentioned the disadvantages of App Tracking Transparency for consumers. The companies claim that users will have to pay more for apps since free, ad-supported apps will not be available.
Thomas Hoppner from the law firm Hausfeld, which represents the plaintiffs, said most apps would be forced to charge consumers, as the advertising-based business model that has made them profitable so far would no longer apply.
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The lawsuit also said that consumers would be harmed by the lack of personalized advertising as they would have to spend more time searching for products that interest them.
Apple, for its part, responds to these accusations by saying that it is a privacy issue and that App Tracking Transparency will give consumers the ability to decide how their data is used.
See also: Tim Cook: Apple is not against digital advertising, it's just enhancing user privacy
Apple faces complaints of this type in various countries around the world, as well as in the US.
Source: 9to5Mac
