France probes Apple's ad data practices

France's competition watchdog has formally objected to Apple's practices, accusing the iPhone manufacturer of exploiting its leading market position to dictate terms concerning the use of personal data for promotional purposes.

The competition authority, or AdlC, confirmed on Tuesday it had initiated an investigation into Apple's advertising data practices, with the tech giant's App Tracking Transparency, or ATT, privacy policy program the focus of scrutiny.

The agency cited concerns that Apple could have infringed rules linked to the use of iPhone user data for advertising purposes.

In 2020, four French advertising groups lodged a grievance against Apple regarding the implementation of its ATT program, which allows users some control over the ability of apps to track and relay data, and which could be harnessed by advertisers for personalized marketing, Reuters reported.

Advertisers said Apple's changes did not align with European Union privacy regulations, a claim that Apple refutes.

The ATT mandates developers to seek user consent if they intend to "track" user activities across different apps, the Financial Times reported. This tracking is a prevalent method for constructing a user's digital profile and targeting them with customized advertisements.

In its statement, AdlC said Apple might "abuse its dominant position by implementing discriminatory, nonobjective and nontransparent conditions for the use of user data for advertising purposes".

Apple denied this is the case. In a statement, it insisted it holds its advertising business "to a higher standard of privacy than it requires of any other developer by prompting users for explicit permission before delivering any personalized ads".

Market research organization Evercore ISI projects that revenue from iPhone's ads will surge from $5 billion last year to $30 billion by 2026, the Financial Times reported.

Apple said it has "previously received strong support from regulators and privacy advocates" on the ATT policy's goal. "We will continue to engage with (French authorities) constructively to ensure users remain in control of their data," it added.