Massive lawsuit against Apple: demand for billions of dollars in compensation

The tech giant Apple is facing a class-action lawsuit totaling approximately 2 billion pounds (about 2.7 billion dollars), filed in London on behalf of app developers. At the center of the proceedings are claims that the company used its dominant position in the iPhone ecosystem to harm competition in the digital advertising market.

According to a Reuters report, the lawsuit focuses on the App Tracking Transparency (ATT) mechanism, which Apple launched in 2021. The system requires apps to ask users for explicit permission before they can track their activity. According to the plaintiffs, Apple imposed more significant restrictions on third-party developers than those it applied to its own advertising services, thereby giving its advertising business a competitive advantage.

The proceedings are led by Anne Pope, a former senior official at the UK's Competition and Markets Authority. She claims that Apple's policy caused significant economic damage to businesses in the UK that depend on the company's system to reach users. The goal of the lawsuit is to obtain compensation for those affected and to demand the creation of fairer competitive conditions.

The debate is related to a significant change Apple made in the world of advertising. Before the launch of ATT, apps could use the IDFA advertising identifier to track user activity across apps and websites and show them targeted advertising. After the change, explicit user permission for tracking was required, and many chose not to allow it.

According to the plaintiffs, the restrictions particularly hurt advertising networks and app developers, while Apple Search Ads, Apple's advertising service, apparently enjoyed a superior competitive position. According to the claim, the change caused advertisers to shift some of their advertising budgets to Apple's services, precisely at a time when other alternatives faced a decline in the ability to measure and target users.

Apple rejects the claims. The company argues that ATT was designed to give users simpler and clearer control over their privacy, and that the same requirements apply to its own advertising services and to other developers.

The case is taking place alongside growing regulatory pressure on Apple across Europe. In Germany, the company was required to make changes to targeted advertising rules following complaints filed by Meta, publishers, and developers. At the same time, authorities in France, Italy, and Poland are also examining the company's conduct.

The lawsuit in London joins a series of legal and regulatory battles that place Apple before a complex dilemma. On one hand, the company presents privacy protection as a central principle of its products. On the other hand, developers and regulators argue that the way it implements the policy could strengthen its own services and weaken competitors. Now, the British judicial system will be required to examine whether this is a legitimate protection of user privacy or a move that harms competition.