Apple to Change App Tracking Rules After German Competition Probe
Apple will change rules governing how app developers use personal data for targeted advertising on iPhones and iPads after Germany’s competition authority closed a years-long investigation into its App Tracking Transparency framework.
The Federal Cartel Office (FCO) found that Apple’s framework gave its own apps more favourable consent prompts than those shown to third-party developers. As a result, the authority said the approach could breach competition rules.
Changes to App Tracking Transparency
Under commitments agreed with the FCO, Apple must redesign consent pop-ups for third-party apps. The changes aim to remove language and symbols that could discourage users from giving consent.
In addition, the prompts must become visually and linguistically neutral. Therefore, third-party developers will receive consent prompts that are designed on a more even basis.
Apple has four months to implement the changes once the decision is formally served. Meanwhile, the commitments will remain in place for seven years and will be monitored by a trustee.
Apple said it believes its existing App Tracking Transparency prompt offers a clear and effective way for users to control their data. The company also said German data protection authorities share that view.
However, Apple agreed to alter the wording and formatting of the prompt at the FCO’s request. The company said the commitments allow it to continue providing the tool in Europe. The changes will apply in almost all European Union countries.
Impact on Third-Party Developers
The changes are particularly relevant to developers of third-party apps that rely on targeted advertising. Meta Platforms, the parent company of Facebook, is among the developers seeking accurate user data to help display targeted adverts on devices.
Targeted advertising can generate more revenue than broader advertising campaigns. Consequently, the way users provide consent under Apple’s framework has significant commercial implications for developers.
The FCO’s investigation focused on the different treatment of Apple’s own apps and third-party developers within the App Tracking Transparency system. The authority’s decision now requires Apple to adjust the consent process under the agreed commitments.
Apple Faces Action in Europe
Germany’s decision follows regulatory action against Apple’s App Tracking Transparency framework in other European countries.
France has already fined Apple €150 million over the framework. Italy has also imposed a fine of €98.6 million.
The German case therefore adds to regulatory scrutiny of Apple’s approach to user consent and targeted advertising. However, the FCO’s decision closes its investigation after Apple agreed to the changes.
The commitments will remain subject to monitoring for seven years. Apple must also complete the required changes within four months of receiving the decision.
With inputs from Reuters