Apple hit with huge $2.7 billion lawsuit over app tracking privacy feature
Apple's App Tracking Transparency (ATT) system has found itself at the heart of a new major lawsuit, as app developers from the United Kingdom have accused the tech giant of providing an 'unfair advantage' for its own advertising services as a result.
If successful, this lawsuit could cost Apple as much as $2.7 billion with potential lost revenue being the likely killer when it comes to compensation, yet it could also force the iPhone maker to change how it operates privacy rules on the app store.
This particular feature was first introduced back in 2021, and requires developers to activate it "if your app collects data about end users and shares it with other companies for purposes of tracking across apps and web sites," according to the Apple Developer hub.
From the user end, you might have noticed a message pop up whenever you first open an app, with it usually reading something along the lines of:
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"Allow 'Example App' to track your activity across other companies' apps and websites?," providing you with the option to either allow this tracking or ask the app not to track.
Why are app developers suing Apple?
While this feature is certainly a benefit on the side of the user, as it allows them to not only control what information is tracked and shared with third parties but also deny it outright, the app developers themselves claim that they were forced to stomach a loss in revenue with little time to adapt.
Additionally, part of the complaint comes from the fact that the feature was "designed and implemented unfairly and without proper consultation," as per TRT World, "imposing stricter requirements on third-party app developers than on its own services."
The developers add that they were left "unable to adapt their business models in time to avoid significant losses," and the feature has even come under scrutiny from various other authorities across Europe.
Ann Pope, a leading figure behind this claim and former official at the Competition and Markets Authority (CMA), indicated that the lawsuit serves as a vital tool to "protect the rights of British businesses that depend on Apple, to ensure that the rules that Apple applies are fair, and to compensate the losses that British companies have suffered."
How has Apple responded to the lawsuit?
Apple has remained firm in its belief that the App Tracking Transparency feature is the right way forward, with a spokesperson for the company outlining in a statement to AFP that it gives "users a simply way to control whether apps have permission to track their activity across other companies' apps and websites."
The spokesperson clarified in addition that "Apple is bound by the same requirements as all developers under ATT, and this feature has been embraced by our customers and praised by privacy advocates," suggesting that it isn't willing to budge going forward.
Considering the scale of the lawsuit and the compensation at stake its likely that this particular legal challenge will stretch out for a while, with the filing only completed on Thursday.