Apple Fined €150 Million in France for Abuse of Dominance
The French Competition Authority penalizes Apple for preferential treatment of its own apps in data consent processes.
The French Competition Authority has imposed a fine of €150 million on Apple following a ruling related to the company’s practices in mobile app distribution.
The announcement was made during a press conference on March 31. This fine is a result of Apple’s alleged abuse of its dominant position in the mobile app market.
Until 2021, Apple did not require consent from users for the use of data in its own applications, while enforcing stricter consent requirements for third-party apps available on its App Store.
This discrepancy has raised significant concerns regarding fair competition and consumer rights, particularly under the General Data Protection Regulation (GDPR), which mandates clarity and consent in data handling.
In December 2022, the CNIL (Commission Nationale de l'Informatique et des Libertés) found Apple at fault for not applying the same consent requirements to its apps as it did for competitors.
Although Apple later introduced a consent procedure for its applications, this was deemed less stringent than what was imposed on third-party developers, creating a situation of 'asymmetry' in data consent practices.
This has particularly affected small developers, who have expressed concerns to the Competition Authority.
In determining the penalty, the Competition Authority opted for a fixed fine, diverging from its usual practice of imposing fines proportional to a company’s revenue.
The €150 million fine is a notable decision, as Apple could have faced penalties up to 10% of its projected revenue, amounting to approximately $39 billion based on projected revenues of $391 billion for 2024.
This ruling marks a significant moment in ongoing scrutiny targeted at major technology firms regarding their competitive practices.
Apple is now facing similar investigations across several countries, including Italy, Poland, Romania, and Germany.
The French ruling is notably the first of its kind against the company on this issue.
In a previous case, Apple was fined €1.1 billion in 2020 over anti-competitive agreements with two major distributors in France, which was later reduced to €371 million by the Paris Court of Appeal in 2022.
The announcement was made during a press conference on March 31. This fine is a result of Apple’s alleged abuse of its dominant position in the mobile app market.
Until 2021, Apple did not require consent from users for the use of data in its own applications, while enforcing stricter consent requirements for third-party apps available on its App Store.
This discrepancy has raised significant concerns regarding fair competition and consumer rights, particularly under the General Data Protection Regulation (GDPR), which mandates clarity and consent in data handling.
In December 2022, the CNIL (Commission Nationale de l'Informatique et des Libertés) found Apple at fault for not applying the same consent requirements to its apps as it did for competitors.
Although Apple later introduced a consent procedure for its applications, this was deemed less stringent than what was imposed on third-party developers, creating a situation of 'asymmetry' in data consent practices.
This has particularly affected small developers, who have expressed concerns to the Competition Authority.
In determining the penalty, the Competition Authority opted for a fixed fine, diverging from its usual practice of imposing fines proportional to a company’s revenue.
The €150 million fine is a notable decision, as Apple could have faced penalties up to 10% of its projected revenue, amounting to approximately $39 billion based on projected revenues of $391 billion for 2024.
This ruling marks a significant moment in ongoing scrutiny targeted at major technology firms regarding their competitive practices.
Apple is now facing similar investigations across several countries, including Italy, Poland, Romania, and Germany.
The French ruling is notably the first of its kind against the company on this issue.
In a previous case, Apple was fined €1.1 billion in 2020 over anti-competitive agreements with two major distributors in France, which was later reduced to €371 million by the Paris Court of Appeal in 2022.
