German Regulators Open Investigation Into Apple's App Tracking Transparency

From the MacRumors blog earlier this week:Germany's Federal Cartel Office, the Bundeskartellamt, has initiated proceedings against Apple to investigate whether its tracking rules and anti-tracking technology are anti-competitive and self-serving, according to a press release. The proceeding announced will review under competition law Apple's tracking rules and specifically its App Tracking Transparency Framework (ATT) in order to ascertain whether they are self-preferencing Apple or being an impediment to third-party apps... Introduced in April 2021 with the release of iOS 14.5 and iPadOS 14.5, Apple's App Tracking Transparency Framework requires that all apps on aOEiPhoneaOE and aOEiPadaOE ask for the user's consent before tracking their activity across other apps. Apps that wish to track a user based on their device's unique advertising identifier can only do so if the user allows it when prompted. Apple said the feature was designed to protect users and not to advantage the company... Earlier this year it commissioned a study into the impact of ATT that was conducted by Columbia Business School's Marketing Division. The study concluded that Apple was unlikely to have seen a significant financial benefit since the privacy feature launched, and that claims to the contrary were speculative and lacked supporting evidence. The technology/Apple blog Daring Fireball offers its own hot take:In Germany, big publishing companies like Axel Springer are pushing back against Google's stated plans to remove third-party cookie support from Chrome. The notion that if a company has built a business model on top of privacy-invasive surveillance advertising, they have a right to continue doing so, seems to have taken particular root in Germany. I'll go back to my analogy: it's like pawn shops suing to keep the police from cracking down on a wave of burglaries.... The Bundeskartellamt perspective here completely disregards the idea that surveillance advertising is inherently unethical and Apple has studiously avoided it for that reason, despite the fact that it has proven to be wildly profitable for large platforms. Apple could have made an enormous amount of money selling privacy-invasive ads on iOS, but opted not to.

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