Polish antitrust authority is investigating Apple due to its privacy policy

Poland’s competition regulator, the Office of Competition and Consumer Protection (UOKiK), has launched a new antitrust investigation into Apple, questioning whether its App Tracking Transparency (ATT) framework grants the company an unfair advantage in the mobile advertising market. 

The move was made public on Tuesday, November 25. The agency suspects that Apple’s App Tracking Transparency system, introduced in iOS 14.5 and subsequent versions, may limit third-party apps’ ability to collect user information for personalized ads while benefiting Apple’s own advertising platform. 

This was after UOKiK President Tomasz Chrostny noted in a statement that they anticipated the ATT policy might have misled users about the actual level of privacy protection they possess, and also enhanced Apple’s competitive advantage over independent publishers.

Such an act, according to Chrostny, could be deemed an abuse of a dominant market position. Therefore, he concluded that if these allegations are confirmed to be true, then Apple will have to face a fine of up to 10% of its annual income in Poland.

Respondingly, the company argued that the ATT framework was adapted to give clients control over who can track their online activities. Based on Apple’s argument, this strategy helps consumers safeguard their privacy.

UOKiK initiates a thorough investigation into Apple’s ATT policies 

In an emailed statement, Apple stated that it is not surprised to discover that the data tracking industry is persistent in its efforts to undermine its attempts to restore control of data to users. Considering the intense nature of the situation, the company noted that it may be forced to eliminate this feature due to increased pressure from the industry, which would ultimately harm European consumers.

Apple’s statement created tension in the industry. To address anxiety, authorities in the data tracking industry have outlined their intention to join forces with UOKiK to ensure the company continues to offer users this crucial privacy tool. 

To illustrate their commitment to uncovering the truth behind these claims, UOKiK disclosed that a combination of antitrust regulators in Germany, Italy, and Romania has thoroughly examined ATT policies. 

According to the agency, they cannot assume this situation as reporters from sources highlighted that a French authority fined the tech giant  150 million euros, which is equivalent to around $172.86 million, in March.

Meanwhile, recent reports have also noted that Poland is developing a new law aimed at taxing online platforms. The relevant authorities responsible for developing this law stated that their primary goal is to create a fairer environment for local businesses. The authorities adopted this decision after discovering that foreign competitors were not subjected to the same taxes in Eastern Europe.

According to Deputy Premier Krzysztof Gawkowski, this proposal is set to be presented early next year. Notably, Gawkowski leads the Digital Affairs Ministry. In this new tax proposal, the Deputy Premier emphasized that the aim is to collect approximately 2.5 billion zloty ($681 million) annually.

The tax will primarily impact e-commerce firms, but will also apply to online advertising businesses, ride-sharing apps, and companies that sell user data collected in Poland, according to initial plans.

Gawkowski acknowledged that e-commerce platforms should contribute fairly, based on their earnings, under this law, to address this issue, which has been particularly significant for Asian firms operating in Poland. “We shouldn’t hesitate to implement a solution already adopted by many European nations that proves beneficial,” he added.

This plan aligns with the European Union’s efforts to support local firms in the face of rapidly expanding Chinese marketplaces. Reports from reliable sources indicated that these marketplaces had already encountered similar taxes in countries such as France, Sweden, Italy, and Austria. 

Poland’s new digital services tax proposal faces criticism from individuals 

For the digital services tax law to get more votes and be approved, Gawkowski highlighted that he is seeking support from Prime Minister Donald Tusk’s group.

However, just like other tax proposals, the new tax law proposal faced criticism from individuals. Some officials raised concerns that this tax, which ranges between 3% and 6% of incomes gained in Poland, might result in retaliation from the US, a key player in the tech industry and strategic ally of Poland. 

In the meantime, sources familiar with the matter said Gawkowski intends for the tax to apply to companies generating at least €750 million ($865 million) in annual revenue. Firms that already pay corporate income tax in Poland, such as Warsaw-listed e-commerce group Allegro.eu SA — would be allowed to offset the new levy against their existing tax obligations.

“We will do everything possible to make sure that Polish companies, including Allegro, won’t end up paying more than they currently do,” he stated. “We are willing to discuss the details because we want local businesses to agree on this solution.” 

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