Apple Fends Off First Legal Challenge After App Privacy Changes

March 17, 2021 07:11 PM PDT | By Team Kalkine Media
 Apple Fends Off First Legal Challenge After App Privacy Changes

Source:Rido, Shutterstock

Summary

  • French competition authority deflects move against Apple over its new app privacy settings.
  • Apple to restrict third-party access of its users’ browsing data through an opt-in option.
  • Big Tech companies face increased scrutiny in Europe, US over monopoly, privacy concerns.

French regulators on Wednesday, March 17, 2021, deflected a move by advertising and publishing companies to stop Apple from installing a new privacy tool on its smartphones to block the tracking of user data.

Addressing the media after the verdict, head of France’s competition authority Isabelle de Silva said that her office has not found any instance of rule violation against the company, stressing that the regulator will not take up a case just because some businesses may be impacted by Apple’s decision.

The authority, however, said that it will continue probing if Apple’s privacy change was an act of self-preferencing. The inquiry may go on over the next few months. The California-headquartered company had last year announced to restrict third-party apps from collecting its users’ internet data.

The controversial decision has angered some affected parties, including Facebook and the app developers, which blames the company for stifling competition in the guise of privacy concern.

Passing their judgment, the French regulators noted that Apple’s plan does not appear to be abusive. The ruling came as a major setback for firms hoping to take on the tech giant via the antitrust route. This development may also weigh on potential future actions in other countries.

The smartphone maker has welcomed the decision and said it will extend all cooperation in the investigation. An Apple spokesperson later commented that users have a right over their data.

In line with its November announcement, Apple plans to introduce an opt-in feature that will allow its users to decide if they want to share their internet browsing data with third-party developers. Facebook has termed the move as an attempt to block the progress of others that rely on such data.

Pic Credit: Pixabay.

Pressure Mount On Big Tech Companies

Big Tech companies, including Apple, Google, and Facebook, have been a subject of increased scrutiny in Europe and the US over their alleged monopoly practices and sharing users’ data to third-party app developers for pushing ads. US regulators had last month served notices to Facebook seeking its response over its purchase of companies to supposedly eliminate competition.

The US Federal Trade Commission (FTC) and the state attorneys’ general in Washington in a fresh antitrust motion has sought Facebook’s response to the allegations over its purchase of WhatsApp and Instagram, which the regulators say was an attempt to establish dominance in the market.

The social media company has rejected the charges and claimed that the authorities have ignored the competitive nature of the advertising business in which all stakeholders have upped their stakes. The FTC is likely to respond to Facebook’s submissions next month.

In recent months, the FTC has enhanced its supervision on the broader US market, especially on mergers and acquisitions by companies that may unfavorably impact the rising, independent enterprises which can become the future challengers to the big companies in healthy competition.


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