Apple Forced to Revamp App Tracking Rules After German Antitrust Probe
After facing a lengthy investigation by Germany's antitrust authority, US technology giant Apple is being forced to make major changes to its policy on using personal data in apps. The new rules will affect how Apple uses customers' personal information on iPhones and iPads to deliver targeted advertisements.
On Monday, Germany's Federal Cartel Office officially announced the conclusion of its year-long investigation and outlined the changes Apple must make.
Competition Law and the New Policy
The German regulator's investigation found that Apple's App Tracking Transparency (ATT) system was giving Apple's own apps an advantage over third-party applications.
When third-party apps sought users' permission to access and use their data, the pop-up messages presented to users contained certain wording or symbols that could discourage them from giving consent. The authority concluded that this created an uneven competitive environment in the market.
Under the new decision, Apple will have four months from receiving the notice to implement the proposed changes. An independent trustee will then monitor Apple's proper implementation of the measures for the following seven years.
Impact on Advertising and the European Union
Under the new rules, pop-up messages used by third-party apps to request users' consent must be completely neutral in terms of both their visual presentation and wording.
This will give major technology companies such as Meta, the parent company of Facebook, as well as other app developers greater flexibility in obtaining users' consent.
Targeted advertisements based on reliable user data can generate significantly more revenue than conventional advertising because they allow advertisers to reach specific groups of consumers more precisely.
Apple said the new policy will be implemented in almost all European Union countries.
Earlier, France and Italy had also fined Apple over the same controversial tracking system, imposing penalties of €150 million and €98.6 million, respectively.
//DBTech/BMT/OR//
