EU, Apple’s New Privacy Policy Under Fire?

[Asia Economy Reporter Yujin Cho] European Union (EU) regulatory authorities have warned of antitrust risks regarding Apple's new privacy protection policy, according to US economic media CNBC on the 8th (local time).

The fact that the EU regulatory authorities have mentioned for the first time the heated unfairness controversy sparked by competitor Facebook, which is even willing to engage in legal battles, has drawn attention to the developments.

According to the report, Margrethe Vestager, the EU Commissioner for Competition, warned that Apple's new privacy protection measures should be applied equally to all apps within the platform. This pointed out that Apple's new privacy protection feature could escalate into an antitrust violation.

She said, "This issue is related to privacy protection, but if Apple harms fairness, it can be judged as an antitrust issue," adding, "If Apple does not treat all apps in the same way, there could be a risk of competition violation."

Apple will introduce the ‘App Tracking Transparency’ feature in its new operating system iOS14, to be launched in the first half of this year, which prohibits tracking users' app activity records.

This is intended to increase data transparency by allowing users to check how their data is processed within apps and to grant them the right to choose, but it directly threatens the business models of social media companies like Facebook that generate revenue by providing personalized ads to users.

Facebook is resisting Apple's measures, even considering legal action. Mark Zuckerberg, Facebook CEO, criticized during the Q4 earnings conference call, saying, "Apple gains a lot by interfering with Facebook and other apps," and "Apple's policies, including the iOS14 update, will harm millions of small and medium-sized businesses worldwide that rely on targeted advertising."

The EU regulatory authorities may seek regulatory measures led by two bills currently underway, the 'Digital Markets Act' and the 'Digital Services Act,' to prevent abuse of Apple's new policy, the media reported.

In December last year, the EU tightened regulations by unveiling new digital-related bills targeting big tech companies such as Apple, Google, and Facebook.

The Digital Markets Act prohibits unfair practices by big tech companies and mandates notifying the EU of merger and acquisition plans, while the Digital Services Act includes key provisions that allow imposing fines of up to 10% of revenue or ordering service suspension or business divestiture if fair trade and competition regulations are violated.

Meanwhile, Apple has not issued a separate comment regarding the remarks from the EU regulatory official.