Apple has been fined 150 million euros ($247 million AUD) by French antitrust regulators for abusing its dominant position in mobile app advertising through its App Tracking Transparency (ATT) tool.

This marks the first fine issued by an antitrust authority over Apple’s privacy feature.

The French Competition Authority found that Apple’s ATT tool, which allows iPhone and iPad users to control which apps can track their activity, disproportionately impacted smaller publishers and advertisers.

The regulator stated that while Apple’s objective of protecting personal data is not inherently problematic, the way ATT was implemented was neither necessary nor proportionate.

The ruling follows a 1.8 billion euro ($2.96 billion AUD) antitrust fine imposed by the European Union last year over Apple’s alleged obstruction of rival music streaming services on its App Store.

Despite concerns about potential retaliation from the U.S., French Competition Authority head Benoît Cœuré emphasised that competition law was applied independently of political influence.

Apple has expressed disappointment with the ruling but noted that the regulator has not mandated any specific changes to ATT.

Compliance with the ruling could take time, as similar investigations are ongoing in Germany, Italy, Poland, and Romania.

The case, which covered the period 2021 to 2023, was prompted by complaints from advertiser and publisher associations, including Alliance Digitale and Syndicat des Régies Internet (SRI).

They hailed the decision as a significant victory for advertisers, arguing that ATT increased advertising costs and made it harder for brands to reach consumers.