Apple faces £2 billion lawsuit in London — company accused of abusing app tracking rules

A £2 billion (roughly $2.7 billion) lawsuit has been filed against Apple in London. The case has been brought on behalf of app developers and accuses the tech giant of abusing its market power through its App Tracking Transparency rules.

The lawsuit was filed on Thursday at London's Competition Appeal Tribunal. It follows years of regulatory scrutiny surrounding Apple's App Tracking Transparency feature, which the company introduced in 2021.

According to Apple, the feature gives users control over whether to allow apps to track their activity across other companies' apps and websites.

However, the lawyers behind the lawsuit against Apple argue that the App Tracking Transparency rules impose stricter requirements on third-party developers than on Apple's own services. In their assessment, this has given Apple's advertising ecosystem a competitive advantage.

Apple accused of breaching competition rules

The lawsuit is being led by Ann Pope, a former senior official at Britain's Competition and Markets Authority (CMA).

According to Pope, Apple's policy has caused "significant harm to businesses that depend on Apple as a critical gateway to the market."

"This legal action is important for protecting the rights of British businesses that depend on Apple, to ensure that the rules Apple applies are fair and that British companies are compensated for the harm caused to them," Pope said.

The dispute over App Tracking Transparency centers specifically on whether Apple's privacy and data-tracking rules apply equally to Apple itself and to third-party developers.

Apple: the rules are the same for all developers

Apple disputes the allegations and states that the purpose of App Tracking Transparency is to make it easier for users to control their data and privacy.

According to the company, the feature was created to give "users a simple way to control whether apps have permission to track their activity."

Apple also states that the App Tracking Transparency requirements are "exactly the same" for the company itself as for all other developers.

The case will now proceed at London's Competition Appeal Tribunal, and its outcome could prove significant both for Apple's advertising business and for the company's relationship with app developers.