Apple gets boost in French data privacy fight, but still faces probe

By Mathieu Rosemain

PARIS (Reuters) - Apple was given a boost on Wednesday as France's antitrust watchdog rejected advertisers' requests to suspend the iPhone maker's upcoming privacy feature, but it still faces a probe into whether it unfairly favours its own products and services.

Apple's new 'App Tracking Transparency' feature allows users to block advertisers from tracking them across different applications.

The U.S. tech giant says it defends data privacy rights, but it faces criticism from Facebook, app developers and startups whose business models rely on advertising tracking.

French groups IAB France, MMAF, SRI and UDECAM complained to the French watchdog last year, saying the feature would not affect Apple's ability to send targeted ads to users of its own iOS software without seeking their prior consent.

The head of the watchdog, Isabelle de Silva, said she had worked closely with France's CNIL data privacy regulator in deciding to reject the request to suspend the feature.

She said CNIL estimated the pop-up box put in place by Apple could benefit users in an ever-more complex online advertising environment, and was presented in clear and unbiased way.

But de Silva said she was investigating whether Apple favours its own services and products, with a decision expected by early next year at the latest.

"Companies are free to set their own rules and this flexibility also exists for dominant players and structuring platforms," she told a news conference.

"However, they must be vigilant in the way they set their rules. We are very careful that these rules are not anti-competitive and do not impose unfair conditions."

Apple said it welcomed the watchdog's decision that the 'App Tracking Transparency' feature was in the best interests of French customers.

The complainants said they were disappointed by that decision, but welcomed the probe into Apple's conduct.

They have alleged Apple's behaviour constitutes an abuse of its dominant position, because developers have to agree to Apple's terms to see their apps appear on the company's App Store and become available to iPhone users.

Two-thirds of the time French people spent online in 2020 was on smartphones, according to researchers Mediametrie.

Facebook's executives told investors earlier this year that Apple's new feature could start hurting the social network's revenue in the first quarter, with CEO Mark Zuckerberg accusing Apple of having "every incentive to use their dominant platform position to interfere with how our apps and other apps work."

 

(Reporting by Mathieu Rosemain. Additional reporting by Foo Yun Chee in Brussels. Editing by John Stonestreet and Mark Potter)