Germany’s antitrust authority has launched what could be the most critical test of Apple’s business practices this year.
The Bundeskartellamt is evaluating Apple’s proposed solutions to competition concerns around App Tracking Transparency through a comprehensive market test — and the outcome could fundamentally alter how Apple handles user data globally.
The stakes couldn’t be higher for Apple. Companies found guilty of breaching Germany’s antitrust rules face fines up to 10% of annual turnover, and Apple’s been racing against time to address these concerns since authorities first challenged the tech giant’s practices nearly three years ago. The company has agreed to introduce neutral consent prompts for both its own apps and third-party apps, but whether these fixes satisfy regulators remains the million-dollar question.
Privacy weapon that backfired
Back in April 2021, Apple rolled out its App Tracking Transparency framework with iOS 14.5, requiring apps to display standardized pop-ups asking users for permission before tracking their activity. What seemed like a privacy victory has morphed into the center of a fierce antitrust battle across multiple jurisdictions — and the evidence suggests Apple may have overplayed its hand.
Germany’s investigation, which launched in June 2022, uncovered damaging evidence of Apple’s systematic advantage. First, Apple defined tracking narrowly to only cover data processing across companies, conveniently exempting its own practice of combining user data within its ecosystem. Second, third-party apps must show up to four consecutive consent dialogues, while Apple’s own apps show a maximum of two. Most problematically, German regulators discovered the consent dialogues designed with structural bias against third-party consent.
The impact devastated competitors. Analytics firm Flurry reported that opt-in rates for app tracking after iOS 14.5’s launch varied between just 11% and 15%. Meanwhile, Apple maintained extensive access to user data through its comprehensive digital ecosystem spanning the App Store, Apple ID, and connected devices — exactly the kind of first-party advantage that triggered complaints from associations representing publishers, broadcasters, advertisers, their agencies, and ad tech firms.
Apple scrambles
The market test announcement represents Apple’s last major hurdle in Germany’s nearly three-year investigation. Bundeskartellamt chief Andreas Mundt confirmed Apple has agreed to introduce neutral consent prompts, but the authority’s preliminary assessment only indicates the proposals may resolve competition issues — the final judgment will determine whether Apple’s fixes actually work.
This isn’t just another regulatory formality. The broader context amplifies everything: Germany’s Federal Cartel Office designated Apple as having “paramount significance for competition across markets” back in April 2023, joining Google, Amazon, Meta, and Microsoft under stricter oversight. Apple appealed this designation, creating a legal timeline that could converge explosively — the Federal Court of Justice was expected to deliver its ruling on Mar. 18, 2025, a deadline that has already passed.
Apple faces enormous pressure to address these concerns or risk further proceedings and daily fines once the final ruling drops. The company defended its position throughout the process, stating that App Tracking Transparency provides users control over their data through clear and easy-to-understand prompts, and that it “holds itself to a higher standard than it requires of any third-party developer.” However, regulators stopped buying that justification months ago.
Beyond German borders
This case represents just one front in a broader global reckoning with Apple’s business practices. France’s competition authority already imposed a €150 million fine on Apple last spring for similar ATT-related competition concerns. Under the EU’s Digital Markets Act, Apple faces prohibitions from self-preferencing on iOS and other core platform services.
The investigation highlights a fundamental tension reshaping tech regulation worldwide. Research from earlier this year shows that allegations in Apple’s ATT investigations involve privacy being used as a business justification for anticompetitive behavior. This “privacy-antitrust curse” demonstrates how including privacy harms in antitrust may enable firms to game regulations, complicating enforcement efforts across jurisdictions.
Apple tried to address some concerns last spring, announcing that Apple Search Ads would register with AdAttributionKit (formerly SKAdNetwork), allowing advertisers to evaluate Apple Search Ads campaigns alongside other advertising networks in a consolidated attribution framework. But regulators aren’t accepting Apple’s justification that privacy protection should exempt it from fair competition rules.
Global tech regulation watchers are paying close attention, as Germany’s decision could establish precedent for similar investigations worldwide, potentially reshaping how major platforms justify business practices under the banner of user privacy protection.
Last week, Apple took India’s antitrust regulator to court, challenging a new law that could expose the company to a colossal fine of up to $38 billion.
