Apple Sued for $2.7 Billion in U.K. Over App Tracking Rules

Apple is facing a $2.7 billion (£2 billion) lawsuit in London over its app tracking rules. Developers in the U.K. filed the app tracking lawsuit against Apple at the Competitive Appeal Tribunal on September 1. The developers have accused the iPhone maker of abusing its market dominance by imposing tougher restrictions on third-party apps. 

Former CMA Official Leads the ATT Lawsuit Against Apple

Former U.K. Competition and Markets Authority official, Ann ‌Pope is leading the tracking policy lawsuit against Apple. The lawsuit claims that Apple’s privacy feature imposed stricter requirements on developers of third-party apps. 

The same requirements do not apply to its own services, which gives its advertising ecosystem a competitive advantage. The lawyers added that the ATT policy "resulted in very significant harm to businesses that depend on Apple as a gatekeeper".

"This action is important 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," Pope said in a statement as per Reuters. 

The legal action follows years of regulatory scrutiny over Apple’s App Tracking Transparency (ATT) privacy policy, The tech giant introduced the feature in 2021 to give developers greater control in deciding how apps monitor activities across other companies’ websites and applications. 

Which Other Countries Have Investigated ATT?

Several European countries in Europe have investigated Apple over unfair app tracking rules. In Germany, Apple agreed to revise its rules on the use of personal data by app developers for targeted advertising in Germany. 

Germany’s competition authority had accused Apple of abusing its market power after the privacy tool attracted criticism from Meta, publishers, advertisers and app developers whose businesses rely on advertising tracking.

Last year, Italy’s antitrust watchdog imposed a $115 million fine on Apple over the privacy policy following a probe that started in May 2023. Italian regulators found that Apple’s ATT policy created unequal conditions for developers by requiring them to obtain additional consent to collect data and link it for advertising purposes. 

The tech giant has faced similar probes in France and Poland. Apple’s app tracking case comes at a time when the company is dealing with a leadership transition. The lawsuit adds another challenge for Apple’s new CEO John Ternus, who will have to navigate growing regulatory scrutiny across European markets. 

What the U.K. Lawsuit Means for Apple

The U.K. lawsuit also exposes the company to significant financial liabilities. As regulators intensify scrutiny into the company’s competitive practices, the lawsuit could push the company into rethinking how its privacy rules apply to its app ecosystem. The legal action will likely push Apple into balancing privacy commitments with demands for fair competition to ensure disputes do not disrupt its broader business strategy.