France Fines Apple €150 Million Over Ad Tracking Practices

Apple's App Tracking Transparency (ATT) framework, a key part of its privacy-first strategy, has come under legal scrutiny in Europe. This week, the French Competition Authority imposed a €150 million ($162 million) fine on Apple, alleging that the company abused its dominant market position in the mobile advertising sector between 2021 and 2023.

The penalty marks the first antitrust fine levied against Apple specifically for its ATT framework, which was introduced to iOS to give iPhone and iPad users control over app tracking permissions.

While Apple promotes ATT as a win for user privacy, French regulators argue otherwise. The watchdog found the tool to be "neither necessary nor proportionate" in achieving its stated objectives. More significantly, regulators concluded that ATT unfairly disadvantaged smaller advertisers, publishers, and digital networks reliant on third-party data, while Apple continued to benefit from its own advertising ecosystem.

The introduction of ATT in 2021 sent shockwaves through the digital advertising industry. By requiring explicit user consent for data tracking, the feature restricted ad platforms—including Meta Platforms, formerly Facebook—from effectively targeting users. Meta reported a $10 billion revenue loss following ATT’s rollout, highlighting the profound impact on the sector.

The French investigation stemmed from complaints by industry groups, including Alliance Digitale, SRI, Udecam, and Groupement des Éditeurs de Services en Ligne. Their collective argument: Apple imposed stricter data restrictions on third parties while maintaining a competitive edge in its own advertising operations.

Although the French regulator has not mandated changes to ATT, Apple must publish the decision on its website for seven days—a reputational setback alongside the financial penalty.

This is not Apple’s first clash with European regulators. In 2023, the European Commission fined the company €1.8 billion ($2 billion) for anti-competitive behavior related to its App Store policies, particularly concerning restrictions on rival music streaming services like Spotify.

Further scrutiny is mounting in Germany, where regulators are investigating Apple for allegedly favoring its own services through ATT. Formal charges were filed in February, with additional inquiries underway in Italy, Poland, and Romania.

At the EU level, the Digital Markets Act (DMA), designed to curb Big Tech's dominance, is nearing its first enforcement actions. Both Apple and Meta are under investigation, with potential fines expected soon.

The regulatory focus on Apple has drawn attention in the U.S., where former President Donald Trump recently criticized the DMA and hinted at possible tariffs in response to European actions against American tech companies. French officials, however, insist their antitrust enforcement remains independent and aligned with global standards.