Germany's Antitrust Watchdog Takes Aim at Apple's App Tracking Transparency Policy

Apple's App Tracking Transparency Under Scrutiny in Germany

• Context: Since April 2021, Apple has been under scrutiny from the German Bundeskartellamt (Federal Cartel Office) over its App Tracking Transparency (ATT) feature.
• ATT Details: ATT requires third-party apps to obtain user consent before tracking activity for advertising purposes. However, it is alleged that these strict requirements do not apply to Apple's own apps.
• Antitrust Allegations: The Bundeskartellamt claims this differential treatment may violate antitrust policies under German law and EU competition rules.
• Apple's Response:
  • Disputes the claim, stating that ATT applies equally to all developers, including Apple.
  • Emphasizes strong support from consumers, privacy advocates, and data protection authorities globally.
  • Highlights additional measures like providing users with an affirmative choice for personalized ads and designing services to prevent cross-service data linking.
• Impact on the Industry:
  • ATT has been successful in giving users control over their data, with high opt-out rates (70-80%) compared to Google's Ad Settings (5.4%).
  • Small developers have seen significant revenue growth (37% between 2020 and 2022) and the iOS app economy supports over 400,000 jobs in Germany.
• European Commission Report: Confirms high user awareness and utilization of ATT, contrasting with lower opt-out rates for Google's tracking control features.