Apple Faces UK Challenge Over Tracking

Apple is facing a £2 billion UK lawsuit over the way its App Tracking Transparency system reshaped digital advertising, opening another front in the regulatory battle over how much control technology platforms should have over the ecosystems they operate.

The proposed class action, filed at London’s Competition Appeal Tribunal and led by former Competition and Markets Authority official Ann Pope, alleges that Apple used its market power to restrict third-party app developers while giving its own services an advantage. The case centres on App Tracking Transparency, introduced in 2021, which requires users to grant permission before apps can track activity across other apps and websites.

Apple has presented the feature as a privacy safeguard, but developers and advertisers have long argued that the rules made targeted advertising harder while leaving Apple with valuable first-party data across its devices and services. The lawsuit seeks compensation for businesses that claim their ability to monetise users was damaged.

The dispute arrives as Britain increases scrutiny of mobile platforms. The CMA has designated Apple as holding strategic market status and is consulting on new requirements covering app distribution, payments and developer access. Apple has already made commitments in areas including app review, ranking and data use.

Pressure is building elsewhere. Regulators in Germany, France, Italy and Poland have examined Apple’s tracking practices, while Germany secured changes to how the company handles personal data for advertising.

The case reaches beyond a single privacy feature. At stake is whether platform rules presented as user protections can also strengthen the competitive position of the company setting them. As regulatory scrutiny of digital gatekeepers intensifies, Apple’s tracking policies are becoming part of a broader test of where privacy ends and market power begins.