Poland Investigates Apple Again Over App Tracking Transparency

Poland has initiated a new antitrust investigation into Apple Inc. regarding its App Tracking Transparency (ATT) features. The inquiry, launched by the Office of Competition and Consumer Protection (UOKiK) on November 25, 2023, aims to determine if Apple misled users about their privacy rights while simultaneously gaining an advantage over third-party app developers.

The ATT feature, introduced in Apple’s iOS 14.5, was designed to give users the choice to allow app developers to track their activity across other applications and websites. While the intention was to enhance user privacy, its implementation has raised concerns among regulators. UOKiK’s investigation specifically addresses whether ATT has restricted competition in the mobile advertising market.

According to UOKiK, the ATT framework may have limited advertisers’ ability to gather user data for advertising purposes, while simultaneously favoring Apple’s own advertising programs. This is not the first time Polish authorities have scrutinized Apple’s ATT policies. A similar investigation was conducted in December 2021 in response to complaints from advertisers, although details regarding its findings remain unclear.

The current complaint suggests that Apple holds a competitive edge since its first-party apps are not subjected to the same ATT requirements as third-party applications. Users are not prompted for consent when using Apple’s apps, leading to the presumption that ATT regulations apply preferentially to other companies. Apple has consistently maintained that it does not utilize the same data collection practices for its apps and services for marketing efforts.

Tomasz Chrostny, president of UOKiK, stated, “We suspect that the ATT policy may have misled users about the level of privacy protection while simultaneously increasing Apple’s competitive advantage over independent publishers. Such practices may constitute an abuse of dominant position.”

In response, Apple expressed its belief that the data tracking industry is resistant to ATT, stating, “Now intense pressure could force us to withdraw this feature, to the detriment of European consumers.” The company has indicated its willingness to collaborate with the regulator throughout this investigation.

European scrutiny of Apple’s ATT policies has intensified, with UOKiK noting that regulatory bodies in Germany, Italy, and Romania are also examining similar concerns. Earlier this year, France’s Autorité de la Concurrence concluded a two-year investigation by imposing a fine of $162.4 million on Apple for comparable apparent discrepancies. However, French regulators did not mandate any changes to the existing ATT framework, allowing it to remain in effect.

As lobbying efforts continue to escalate in Europe, Apple warned in October that heightened pressure could lead to the withdrawal of the ATT feature entirely from the European market. Should UOKiK determine that Apple’s ATT practices abuse its dominant market position, the company could face fines of up to 10% of its annual turnover in Poland.

The unfolding investigation highlights the ongoing tension between privacy regulations and competitive practices in the technology sector, as regulators worldwide seek to ensure fair competition while protecting consumer rights.