Reported by Weng Patrick Atokor | Journalist at Weng Global
Apple is set to change the way apps request users’ permission to collect and use data for personalised advertising on iPhones and iPads following concerns raised by Germany’s competition authority.
The decision comes after a years-long investigation by Germany’s Federal Cartel Office, which examined whether Apple’s App Tracking Transparency (ATT) framework treated Apple’s own services differently from third-party applications.
The German regulator said Apple’s existing system could give the company’s own apps more favourable treatment when seeking users’ consent for data tracking. Apple has now agreed to modify the system, allowing the competition authority to close its investigation.
What Apple’s App Tracking Transparency does
Apple introduced App Tracking Transparency with iOS 14.5 and iPadOS 14.5, requiring apps to obtain permission before tracking users across apps and websites operated by other companies.
The system was designed to give users greater control over whether their activity could be used for targeted advertising, advertising measurement or shared with data brokers.
When an app requests tracking permission, users can choose whether to allow or reject the request. Apple says that if permission is denied, developers cannot access the system advertising identifier, known as IDFA, for tracking purposes.
The policy became one of Apple’s most significant privacy initiatives, but it also triggered criticism from parts of the advertising industry and regulators.
Germany’s investigation focused not simply on whether Apple could require consent, but on whether Apple was applying its rules equally to its own services and competing applications.
German regulator raises competition concerns
The Federal Cartel Office concluded that Apple’s framework gave its own applications more favourable consent conditions than those faced by third-party developers.
According to the regulator, this raised competition concerns because Apple operates its own digital services while also controlling important rules governing applications distributed through its ecosystem.
The issue is significant because Apple’s control over iPhones and iPads gives it substantial influence over how developers can collect and use data for advertising.
The regulator’s decision means Apple will now make changes intended to create a more level playing field between its own services and third-party apps.
Consent prompts expected to become more neutral
One of the changes reported in connection with the agreement involves the way consent options are presented to users.
Reports indicate that Apple will adopt more neutral wording in its consent prompts. The revised approach is intended to reduce the possibility that users are steered toward one choice through the design or language of the notification.
This is important because the design of a privacy prompt can influence how people respond.
A system may technically provide users with a choice, but regulators increasingly examine whether that choice is presented fairly and without unnecessary pressure.
The changes therefore go beyond technical data collection. They touch on the broader principle that consumers should be able to make informed decisions about how their personal information is used.
Implications for app developers
For developers, Apple’s changes could affect how applications request permission to use tracking data for personalised advertising.
Under the existing framework, apps that want to track users across other companies’ apps and websites must use Apple’s App Tracking Transparency system.
Apple’s developer documentation states that applications collecting data and sharing it with other companies for cross-app or cross-website tracking must request authorisation through the ATT framework.
The company also requires developers to clearly explain why data is being requested and provide users with an accessible way to withdraw consent.
The forthcoming changes could therefore require developers to adjust consent flows and advertising practices to comply with Apple’s revised requirements.
For advertising-supported applications, the issue is particularly important because personalised advertising can depend heavily on access to behavioural information.
A major issue for the digital advertising industry
Apple’s privacy policy has had a major impact on mobile advertising since ATT was introduced.
Advertisers and technology companies have argued that restrictions on cross-app tracking can make it harder to measure advertising performance and deliver targeted campaigns.
Privacy advocates, however, have generally welcomed stronger restrictions on tracking because they give consumers more control over personal information.
The German case highlights the difficult balance between those two interests.
Apple wants to position privacy as a core feature of its products, while competition authorities are increasingly examining whether privacy measures can also influence competition between technology companies.
The German regulator’s decision shows that privacy rules can have consequences beyond data protection.
Apple maintains its privacy focus
Despite agreeing to change its consent rules, Apple continues to defend its broader approach to privacy.
The company says users should have control over whether applications can track them across other companies’ apps and websites.
Apple also provides settings that allow users to review which applications have requested tracking permission and change those permissions at any time. Users can also disable tracking requests altogether.
The company’s broader privacy framework includes controls covering location, contacts, photos, microphones and other sensitive information.
Apple has also said its advertising platform does not track users and that it does not buy personal information from third parties for advertising purposes.
Wider European regulatory pressure
The German investigation is part of growing European scrutiny of how major technology companies use their control over digital platforms.
Apple has faced regulatory challenges over its App Tracking Transparency policies in other European markets as well.
The issue has become increasingly complicated because the same policy can simultaneously be viewed as a privacy protection and a potential competitive advantage.
Competition regulators are therefore examining not only what companies do with consumer data, but also how platform rules affect businesses that depend on those platforms.
For Apple, the latest agreement represents a significant development because the company will need to demonstrate that its own services and third-party developers are subject to comparable consent principles.
What it means for iPhone and iPad users
For consumers, the changes are unlikely to eliminate Apple’s tracking permission system.
Instead, the main difference will be in how permission requests are presented and how Apple applies the rules across its ecosystem.
Users will continue to have the ability to decide whether an application can track their activity for purposes such as personalised advertising.
Apple’s support documentation makes clear that users can change their tracking permissions through Settings > Privacy & Security > Tracking.
The German case could nevertheless make those decisions more transparent by ensuring that Apple does not provide its own services with advantages that competing applications do not receive.
A new test for Apple’s privacy strategy
The agreement presents Apple with a delicate challenge.
The company must continue protecting its privacy model while ensuring that those protections do not unfairly disadvantage competitors.
For developers and advertisers, the changes could bring greater clarity over how consent is obtained. For users, the objective is to ensure that privacy choices remain genuinely voluntary and understandable.
The outcome also illustrates how the regulation of Big Tech is evolving. Authorities are increasingly looking at the interaction between privacy, advertising, data collection and competition rather than treating each issue separately.
Apple’s changes will therefore be closely watched by developers, advertisers and regulators across Europe.
As digital advertising becomes increasingly dependent on personal data, the debate over who controls that data — and under what conditions — is likely to remain one of the technology industry’s biggest regulatory battles.
Sources: Reuters; Germany’s Federal Cartel Office; Apple Support; Apple Developer Documentation.
