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Apple to change app data consent rules, German regulator says

Created at 17 Aug · 10:21 AM1 source↑ Market-relevant
IN SHORT

Apple will alter its iPhone and iPad app data consent rules for targeted advertising following a German competition authority investigation. The changes aim to create neutral consent prompts for third-party apps, addressing concerns that Apple's framework favored its own applications.

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Key Numbers

4 monthsApple's deadline to implement changes
7 yearsCommitment duration
€150 millionFine imposed by France
€98.6 millionFine imposed by Italy

Who's Involved

Apple
Technology company changing app data consent rules
Federal Cartel Office
Germany's competition authority
Meta Platforms
Parent company of Facebook, a third-party app developer
France
Country that fined Apple over ATT framework
Italy
Country that fined Apple over ATT framework

↳ Why This Matters

This development signifies a victory for regulators in their efforts to ensure fair competition within app ecosystems and protect user privacy, potentially impacting Apple's advertising revenue model and setting a precedent for other regions.

Key facts

  • Apple will change its app data consent rules for targeted advertising on iPhones and iPads.
  • Germany's Federal Cartel Office found Apple's App Tracking Transparency framework favored its own apps.
  • Consent pop-ups for third-party apps will be redesigned to be visually and linguistically neutral.
  • Third-party app publishers will have more flexibility to combine Apple's consent request with separate prompts.
  • The changes will be implemented across almost all European Union countries.
  • Apple has four months to implement the changes after the decision is served.

Apple will modify its rules regarding how app developers can utilize personal data for targeted advertising on iPhones and iPads, according to Germany's competition authority. The Federal Cartel Office concluded its investigation by accepting commitments from Apple to implement these changes, which are intended to address concerns that the company's App Tracking Transparency (ATT) framework provided preferential treatment to its own applications over those of third-party developers.

Under the agreement, Apple has four months to implement the revised consent prompts. These changes will be monitored by a trustee and will remain in effect for seven years. The redesigned pop-ups for third-party apps must be neutral in language and visual presentation, removing any discouraging elements. Additionally, third-party publishers will be granted more flexibility to integrate Apple's mandatory consent request with their own separate data-protection consent prompts.

Apple stated that these modifications will be applied across nearly all European Union countries. The company indicated it had already adjusted the text and design of the consent prompt at the German authority's request. Developers of third-party apps, such as Meta Platforms, rely on accurate user data for targeted advertising, which generates significant revenue. Previously, both France and Italy had imposed substantial fines on Apple, totaling €150 million and €98.6 million respectively, over issues related to the ATT framework.

Frequently asked questions

The ATT framework requires apps to ask users for permission before tracking their data across other companies' apps and websites for advertising purposes.

The Federal Cartel Office investigated whether Apple's ATT framework gave its own apps an unfair advantage over third-party developers in obtaining user consent for data usage.

Apple will redesign consent pop-ups for third-party apps to be neutral and will allow publishers more flexibility in combining consent requests.

The changes will apply in almost all European Union countries, impacting users within that region.

What Happens Next

01Apple must implement the changes within four months.
02A trustee will monitor Apple's compliance with the commitments.

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Cadence

How It Developed

Germany's Federal Cartel Office investigated Apple's App Tracking Transparency framework.
The authority found Apple's framework gave its own apps more favorable consent prompts.
Apple will change rules governing how app developers use personal data for targeted advertising.
Consent pop-ups for third-party apps must be redesigned to be neutral.
Third-party app publishers will gain more flexibility for separate data-protection consent prompts.
The changes will apply in almost all European Union countries.
France and Italy previously fined Apple over the ATT framework.

Sources

T1
Apple to change app data consent rules, German regulator saysReuters

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