Apple faces German antitrust scrutiny over app tracking rules

Germany’s antitrust regulator has raised concerns over Apple’s App Tracking Transparency (ATT) framework, questioning whether the system unfairly disadvantages third-party developers. Following an investigation launched in 2022, the Federal Cartel Office (FCO) has released preliminary findings suggesting that Apple may be engaging in anti-competitive self-preferencing.

The central issue revolves around how Apple applies tracking permissions differently for its own apps compared to third-party applications. The ATT framework, introduced to give iOS users more control over their data, allows them to opt out of cross-app tracking by third parties. However, the FCO argues that Apple exempts itself from these strict regulations, creating an imbalance in the digital advertising ecosystem.

According to the FCO’s statement, Apple’s ATT framework enforces rigorous consent requirements for external developers while applying more lenient standards to its own services. Specifically, the regulator notes that Apple’s tracking consent prompts are designed in a way that encourages user agreement, whereas third-party apps must navigate a more restrictive system that may deter users from opting in.

The FCO has identified three primary issues with Apple’s approach:

1. Data Processing Discrepancy – While Apple limits third-party tracking strictly to advertising-related data collection, it continues to aggregate user data across its own services, including the App Store, Apple ID, and connected devices, for its advertising initiatives.
2. Unequal Consent Mechanisms – Third-party developers are required to present users with up to four separate consent prompts under the ATT framework, whereas Apple’s apps typically require no more than two.
3. Design Bias in User Prompts – The FCO alleges that Apple structures its consent prompts in a way that nudges users toward approving Apple’s tracking while making it more difficult for them to consent to tracking by third parties.

Apple has refuted claims of anti-competitive conduct, defending its ATT framework as a vital tool for consumer privacy. In a statement, company spokesperson Tom Parker emphasized that the system applies equally to all developers, including Apple itself. “App Tracking Transparency provides users with clear and consistent controls over their data. We remain committed to user privacy and will continue engaging with regulators to ensure transparency and fairness,” the company stated.

The ongoing investigation is part of a broader regulatory push across Europe to curb monopolistic practices among tech giants. Apple has been under increasing scrutiny since Germany implemented enhanced abuse-of-dominance laws in April 2023, prohibiting major digital companies from engaging in preferential treatment. Furthermore, under the European Union’s Digital Markets Act (DMA), Apple is barred from self-preferencing practices on key services, including the iOS ecosystem and App Store.

The company has challenged the FCO’s designation, seeking to overturn the regulator’s ability to enforce these special abuse powers. A court decision on Apple’s appeal is expected by March 18, 2025. Meanwhile, the investigation continues, reinforcing the growing regulatory pressure on Apple and other tech giants operating in the European market.