Germany's antitrust watchdog, the Bundeskartellamt (FCO), has released preliminary findings from its investigation into Apple's app privacy framework, suspecting the tech giant of self-preferencing and potentially violating antitrust laws. The FCO believes Apple may not be treating third-party app developers equally, particularly in regards to its App Tracking Transparency framework (ATTF), which allows iOS users to control tracking permissions for ad targeting.

The investigation, which began in 2022, focuses on Apple's behavior in relation to its own services and products, as well as its treatment of third-party app developers. The FCO notes that Apple is prohibited from self-preferencing under the Pan-EU Digital Markets Act (DMA) and German competition law, which aims to regulate big tech's market power.

The ATTF framework is at the center of the controversy, with the FCO highlighting three key aspects that raise competition concerns. Firstly, Apple's definition of tracking only covers data processing for advertising purposes across companies, whereas its own practice of combining user data across its ecosystem for advertising purposes is not subject to the same strict rules. Secondly, third-party apps may show up to four consecutive consent dialogues, while Apple apps show a maximum of two, and the pop-ups around Apple's own apps do not refer to its own processing of user data across services. Finally, the design of tracking consent dialogues on iOS appears to treat Apple's own apps more favorably, encouraging users to allow data processing, while steering users towards refusing third-party apps.

Andreas Mundt, the FCO's president, stated that Apple's comprehensive digital ecosystem provides the company with extensive access to user data relevant for advertising, giving it a significant commercial advantage over competing app publishers. Apple, however, defended its approach, arguing that the ATTF framework gives users more control over their privacy and that the prompt is consistent for all developers, including Apple.

The tech giant now has the opportunity to respond to the FCO's findings, which could have significant implications for Apple's business practices in Germany and the broader EU. This is not the first time Apple has faced scrutiny over its treatment of third-party app developers; the European Commission issued a preliminary breach finding last summer about how Apple operates the App Store.

It's worth noting that Apple is currently appealing the FCO's designation, seeking to overturn the watchdog's ability to wield special abuse powers. The outcome of that appeal is pending a court decision due on March 18, 2025. Meanwhile, the FCO's action underlines the significant competition interventions faced by Apple and other designated tech giants in Europe.

The ongoing investigation and potential consequences for Apple serve as a reminder of the increasing regulatory scrutiny faced by big tech companies in the EU. As the digital landscape continues to evolve, it remains to be seen how these companies will adapt to the changing regulatory environment and balance their business interests with the need to protect user privacy and promote fair competition.