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Apple faces yet another lawsuit over App Tracking Transparency, with a twist
While Apple has long used privacy as a selling point for both its hardware and services, I do wonder whether it now regrets introducing one privacy measure: App Tracking Transparency (ATT).
For something with rather limited scope, it sometimes feels like scarcely a month goes by without a new antitrust lawsuit or regulator challenging it. A third ATT lawsuit is being brought in the UK – this one with a twist …
Personalized advertising has been one of the hot button tech topics for many years now. Instead of seeing random ads for products that may or may not interest us, we are shown ads based on our interests, as gleaned from the apps we use and the websites we visit.
In theory, this is a win for all parties. Consumers are shown ads that may genuinely interest them; advertisers get better results from their ad spend because it is targeted; while free apps and websites funded by ads get higher payments for the same reason.
Although the data used to serve personalised ads is collected in an anonymised form, the practice has led to a widespread perception of it as an invasion of privacy. Even when Apple specifically developed a technology to ensure that this data was anonymous, many consumers remained suspicious.
Apple’s App Tracking Transparency was designed to solve the problem by letting consumers choose whether or not their data could be used to serve personalized ads. Developers who wish to collect this data must ask consumers for permission.
Unfortunately for the iPhone maker, this has led to a whole slew of lawsuits and antitrust investigations, mostly based around the fact that Apple’s own apps don’t seek this permission. The company has on numerous occasions pointed out that its rules are in fact consistent: Apple’s own apps don’t present the ATT prompt because they don’t collect the data it references. Third-party apps that don’t collect this data are also exempted from the need to present the prompt.
Apple has so far faced three complaints to the UK’s relevant antitrust regulator, the Competition Appeal Tribunal. Apple lost the first of these – though is currently appealing – and the second one is still ongoing.
Reuters reports on the third, which was filed today.
Apple is facing a £2 billion ($2.7 billion) London lawsuit brought on behalf of app developers over its app tracking rules, with the iPhone maker accused of abusing its power to unfairly impose greater restrictions on third parties. The lawsuit, filed at London’s Competition Appeal Tribunal on Thursday, follows years of regulatory scrutiny over Apple’s App Tracking Transparency feature.