Apple Revises App Tracking Transparency Prompts Following German Antitrust Ruling
Germany's Federal Cartel Office has ordered Apple to change how it presents data tracking consent prompts on iPhones and iPads, concluding that the current design gives Apple's own apps an unfair advantage over third-party developers.
The App Tracking Transparency feature, which debuted with iOS 14.5 in 2021, requires apps to obtain explicit user permission before tracking activity across other apps and websites. The feature proved costly for social media companies—reportedly costing the advertising industry nearly $10 billion in its first year as most users chose to opt out of cross-app tracking.
Under the EU's Digital Markets Act, Apple holds a designated "gatekeeper" status, requiring the company to ensure fair access and competition on its platform. German regulators determined that Apple's consent prompts were structured in a way that nudged users toward denying tracking permissions for third-party apps while making it easier to consent to Apple's own data practices.
The settlement requires Apple to revise its prompt design to provide a more neutral user experience. The changes will apply specifically to users in Germany, though the case could influence regulatory approaches elsewhere in the EU. Apple confirmed it is implementing the required modifications to its consent dialogs.
This ruling highlights the increasing scrutiny tech gatekeepers face under European competition law, as regulators work to ensure that platform owners do not use their control over app ecosystems to disadvantage competing developers.