German publishers, advertisers, and marketing trade groups are pressing the country’s antitrust regulator to impose penalties on Apple, arguing that the technology giant’s proposed adjustments to its app tracking framework fail to resolve competition concerns tied to its control over user data within the iPhone ecosystem.
The call for action comes as Germany’s competition watchdog, the Bundeskartellamt, continues its investigation into Apple’s App Tracking Transparency (ATT) framework, a privacy feature that has reshaped the mobile advertising industry since its introduction.
The authority charged Apple in February last year with abusing its market power, after a wave of complaints from companies whose businesses depend heavily on advertising data. Among those raising concerns were the Facebook owner Meta Platforms, app developers, publishers, and digital advertisers who argued that the system unfairly restricts access to data needed to deliver targeted advertising.
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At the center of the dispute is the ATT tool, which Apple introduced to give users the ability to decide whether apps can track their activity across other companies’ apps and websites. Under the system, apps must seek explicit permission from users before collecting tracking identifiers used in targeted advertising.
Apple has framed the feature as a major step toward strengthening digital privacy. The company says the tool ensures that iPhone and iPad users remain in control of their personal data, particularly when it comes to cross-app tracking used by advertising networks.
“The tracking industry has consistently fought our efforts to keep users in control of their data, and this is just their latest attempt to gain unfettered access to personal information,” Apple said in response to the latest criticism. “We will continue to defend this important privacy tool for our users.”
Apple added that German data protection regulators had confirmed that ATT complies with existing privacy rules. The company also cited a study it commissioned, indicating that a large majority of iOS users support the ability to control whether apps track their behavior across different digital platforms.
The dispute highlights a growing clash between technology platforms seeking to strengthen privacy protections and the advertising industry, which relies on detailed user data to measure campaign performance and personalize marketing.
In December, Apple attempted to address the concerns raised by the German regulator by proposing changes to the framework. The company said it would introduce neutral consent prompts that apply equally to Apple’s own services and to third-party apps, while aligning the wording, content, and visual design of permission requests.
Apple also proposed simplifying the consent process for developers so that they can request permission for advertising-related data processing in a way that complies with European data protection regulations.
Industry groups, however, say the changes do little to alter the power imbalance they believe exists within Apple’s ecosystem.
In a joint letter submitted to the competition authority, several associations — including the German Advertising Federation and the German Association of the Branded Goods Industry — argued that Apple’s proposed commitments would not resolve the concerns outlined by regulators.
Bernd Nauen, chief executive of the German Advertising Federation, said the framework would continue to give Apple significant control over advertising-related data generated through its devices.
“The proposed commitments would not change the negative effects of the App Tracking Transparency Framework,” Nauen said in the letter.
According to the groups, Apple would remain the central “data gatekeeper,” determining which companies gain access to advertising data and how businesses communicate with customers using Apple devices.
“Apple would remain the data gatekeeper and would continue to decide who gets access to advertising-relevant data and how companies can communicate with their end customers,” Nauen added.
The associations are now urging the Bundeskartellamt to reject Apple’s proposed commitments, require the company to discontinue the tracking framework in its current form, and impose financial penalties.
Under Germany’s competition law, companies found guilty of abusing market dominance can be fined up to 10% of their global annual revenue. For Apple, whose yearly revenue exceeds $380 billion, such penalties could reach tens of billions of dollars.
The case is part of a broader regulatory push in Europe to scrutinize the market power of large technology platforms. Authorities across the region have increasingly focused on the influence companies such as Apple exert over digital ecosystems, including app distribution, payment systems, and access to user data.
Germany has been particularly active in this area. The Bundeskartellamt has already designated Apple as a company of “paramount significance for competition across markets,” a classification that allows the regulator to intervene earlier and impose behavioral restrictions if it determines the firm is abusing its dominance.
The debate around ATT also reflects wider economic shifts in the digital advertising industry. Since the feature was introduced globally in 2021, advertisers and social media platforms have reported significant disruptions to the way they track users and measure the effectiveness of campaigns.
Meta previously warned that Apple’s privacy changes could cost its business billions of dollars in lost advertising revenue by limiting its ability to track users across apps and websites.
Smaller developers and publishers have also complained that the restrictions make it harder to monetize free apps supported by advertising, potentially tilting the market in favor of companies that rely on subscription models or direct payments.
Privacy advocates, however, have welcomed the system as a necessary safeguard in an era when smartphones collect vast quantities of behavioral data about users.
They argue that requiring explicit consent for tracking restores a measure of control to consumers who may not have been fully aware of how extensively their digital activity was monitored for advertising purposes.
The Bundeskartellamt is now reviewing the feedback from industry groups alongside Apple’s proposed commitments.