German publishers are hoping Apple will face fines and be forced to change the rules of its App Tracking Transparency feature after an investigation into anti-competitive practices. Advertisers claim the feature favors Apple apps.
The App Tracking Transparency feature has sparked backlash from the Association of the Branded Goods Industry in Germany and various other groups, who are appealing to German competition authorities to "hit" Apple.
In December, the Bundeskartellamt, Germany's federal competition authority, announced a review of the features of this Apple feature.
See also: Apple: App Tracking Transparency Remains in France
The App Tracking Transparency feature lets iPhone and iPad users decide whether to allow apps to track their activity across other apps and websites for advertising purposes. Users can choose to allow apps to ask for permission or disable tracking entirely.
Naturally, App Tracking Transparency sparked backlash among advertisers and data brokers. Facebook reacted strongly before its launch, portraying Apple as an enemy of small businesses and running multiple full-page ads in newspapers.
Last year, Apple warned that it might be forced to stop offering App Tracking Transparency in the EU due to regulatory pressure in countries like France, Italy, Germany, and Poland, as well as from the overarching European Commission. However, it appears to have tried to propose some changes to satisfy the authorities' demands.
App Tracking Transparency: Changes are not enough
According to a Reuters report, various German groups argue that Apple’s proposed changes do not address the problems in the mobile advertising market. Apple had proposed more neutral language for its notifications and an easier process for developers seeking permission to use advertising data. Despite Apple’s efforts to improve the process, German publishers and their organizations believe that these changes are not enough to ensure healthy competition.
See also: Poland: Apple investigated for App Tracking Transparency
The Bundeskartellamt's investigation focuses on whether Apple is using its market position to restrict competition, especially with regard to apps that it does not own. Publishers argue that Apple's policy gives the company an unfair advantage, as its own apps are not subject to the same restrictions. This could lead to an imbalance in the market, where Apple's apps have better access to user data, while their competitors are restricted.
This case has broader implications for the technology industry, as the European Union and other countries are closely monitoring developments.
See also: Apple: App Tracking Transparency Remains in France
If the investigation results in sanctions against Apple, it could affect how tech companies data user. Apple, for its part, defends its App Tracking Transparency feature as a measure that protects users' privacy and gives them more control over their data. However, its critics argue that the policy is being used to strengthen its market position at the expense of its competitors.
