Poland accuses Apple of unfair ad edge over third-party developers

The Office of Competition and Consumer Protection (UOKIK), Poland’s competition and consumer authority, is investigating whether Apple’s tracking and advertising policies are fair.

The Polish market supervisor seeks to determine whether Apple’s Tracking Transparency framework (ATT), a new user privacy policy introduced in 2021, constitutes anticompetitive behavior.

It has been included in both iOS and iPadOS since version 14.5 and asks users whether applications from third-party developers are allowed to “track” them for advertising purposes. However, when Apple’s apps do the same, the operating system refers to this as “personalized advertising.”

According to the Polish market supervisor, this potentially means that Apple receives more permissions to collect and process user data for advertising purposes than third-party developers do, thus creating unequal conditions for obtaining consent to provide personalized ads, which in turn may lead to an unfair advantage for Apple.

In other words, both Apple and third-party developers want to collect user data for the same purpose, but the way consent is requested differs immensely. The difference could mean that independent app developers can show less personalized ads compared to Apple, resulting in lower revenues.

“We suspect that the way the ATT policy is implemented in Apple’s operating systems may lead to unfair restrictions on competition. That is why I have initiated antitrust proceedings in this case, bringing charges of abuse of a dominant position against Apple, Apple Operations International, and Apple Distribution International,” Tomasz Chróstny, President of UOKiK, says in a statement.

“The wording of these consent messages – combined with their design – may lead to Apple receiving user permission to process data for advertising purposes more frequently than independent app publishers. After all, no one likes the idea of being ‘tracked.’ Yet the practical effect is the same: profiling the user in order to deliver personalized advertisements tailored to their preferences and behavior,” Chróstny continues.

In a response to Reuters, Apple states that its ATT framework was designed to provide consumers with a means to control tracking activities by third-party developers, aiming to safeguard their privacy.

“We will work with the Polish competition authority to ensure Apple can continue to offer users this valuable privacy tool,” Apple said in an emailed statement.

If Apple is convicted of abusing its dominant position, the company could face a fine of up to 10% of its annual turnover in Poland.

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