Apple faces new lawsuit over App Tracking Transparency policy
UK lawsuit claims Apple's ad tracking rules unfairly restrict third-party developers.
1What is App Tracking Transparency?
Introduced by Apple in 2021, App Tracking Transparency (ATT) gives users control over whether apps can track them for personalized advertising. Developers must obtain explicit permission to collect user data. While strengthening Apple's privacy-focused image, this move caused significant disruptions in the ad industry. Companies like Facebook claimed this policy reduced their ad revenues by billions of dollars, sparking ongoing legal battles across multiple jurisdictions.
2Background of legal challenges
Apple's ATT policy has faced numerous legal and regulatory challenges, primarily alleging that Apple exempts its own apps from these rules. The UK has seen two previous antitrust cases - Apple lost the first (currently under appeal) while the second remains ongoing. Similar investigations are underway in the US and EU, making this a global regulatory issue for the tech giant.
3Unique aspect of the new case
The third UK lawsuit stands out because it's led by a former regulator. Ann Pope, who previously held a senior position at the UK's Competition and Markets Authority (CMA), claims Apple's policy 'caused very significant harm to businesses dependent on Apple as a gatekeeper.' This unusual plaintiff profile adds considerable weight to the case and could influence its outcome.
4Plaintiffs' allegations
The £2 billion lawsuit alleges Apple unfairly applies ATT rules to third-party apps while exempting its own services. Plaintiffs seek compensation for British businesses and demand fairer rules. Apple counters that its apps don't show the ATT prompt because they don't collect the referenced data - a position it claims is consistent with how third-party apps are treated when they similarly don't collect data.
5Apple's defense strategy
Apple maintains its ATT policy is consistent, arguing its apps follow the same rules as third-party developers. The company states its apps don't display the ATT prompt simply because they don't collect user data for tracking. Apple positions ATT as a necessary privacy protection measure, suggesting the advertising industry must adapt to these new user privacy norms rather than resist them.
6Developments in US and EU
Beyond the UK, Apple faces ATT-related challenges in the US and EU. Following a German antitrust investigation, Apple agreed to make eight changes to ATT rules for the EU market. While details remain undisclosed, this suggests Apple is adapting to the EU's digital market regulations. These regional variations highlight the complex global regulatory landscape Apple navigates.
7Impact on advertising industry
Since ATT's implementation, personalized advertising has undergone significant transformation. Meta (Facebook) reported approximately $10 billion in lost ad revenue for 2022 attributed to ATT. Many app developers are shifting toward subscription models to compensate for ad revenue declines. This fundamental change in monetization approaches is reshaping the entire mobile ecosystem's economic model.
8The case's broader significance
This lawsuit could set an important precedent beyond Apple, potentially affecting how all major tech platforms operate. The growing debate about companies acting as both marketplace operators and participants may reach a turning point here. Regardless of outcome, this case will likely be remembered as a landmark in defining competition rules for digital platforms, influencing future regulations worldwide.
Original article: 9to5Mac — Apple'a ATT politikası nedeniyle yeni bir dava açıldı