BRUSSELS, Feb 26 (Reuters) - Apple ( AAPL ) is facing a
likely antitrust fine as the French regulator prepares to rule
next month on the company's privacy control tool, two people
with direct knowledge of the matter said.
Called App Tracking Transparency (ATT), the feature allows
iPhone users to decide which apps can track user activity,
helping companies like Meta Platforms' ( META ) Facebook and
online advertisers tailor ads to users and measure their impact.
Digital advertising and mobile gaming companies including
Facebook say it has made it more expensive and difficult for
brands to advertise on Apple's ( AAPL ) platforms.
The French regulator charged Apple ( AAPL ) in 2023, saying it was
concerned that the company might "abuse its dominant position by
implementing discriminatory, non-objective and non-transparent
conditions for the use of user data for advertising purposes".
It is expected to issue its decision next month ordering
Apple ( AAPL ) to halt its anti-competitive practice and will likely
impose a fine too, the people said, making it the first
regulatory veto against the ATT.
French antitrust fines can be as much as 10% of a company's
global annual revenue.
"The decision is expected in the spring. But we can't
comment any further," the regulator said.
Apple ( AAPL ) referred to a July 2023 statement in which it said it
holds its advertising business to a higher standard of privacy
than it requires of any other developer and that it had
previously received strong support from the French regulator and
privacy watchdog on the goal of the ATT.
The German antitrust authority earlier this month charged
Apple ( AAPL ) with abusing its market power through its app tracking
tool and giving itself preferential treatment, putting the
company at risk of a hefty fine.