Apple accused of violating EU privacy law by French startup group

Apple CEO Tim Cook makes a presentation during the European Union privacy conference at the EU Parliament in Brussels, Belgium, on October 24, 2018.

Yves Herman | Reuters

LONDON – France Digitale, a French startup lobbying group, has filed a complaint against Apple with the country’s privacy regulator, arguing that the iPhone maker’s iOS 14 mobile operating system may violate European Union rules.

The campaign group, which has about 2,000 members, filed a seven-page complaint, seen by CNBC, with the Commission Nationale de l’Informatique et des Libertés on Tuesday.

He argues that Apple may be collecting user data for ad tracking services without explicitly asking for permission, and is calling CNIL to investigate. Specifically, she thinks Apple has its “Custom Ads” option enabled by default on iPhones with iOS 14 installed. Apple did not immediately respond to a request for comment from CNBC.

“Our suspicion is that this is a very serious violation of our privacy regulations,” France Digitale CEO Nicolas Brien told CNBC, adding that Apple may be in violation of Europe’s General Data Protection Regulation and Directive Electronic Privacy Policy, also known as the electronic privacy policy.

“Our problem here is that you don’t have the option to consent,” said Brien. “It is activated automatically and this is strictly prohibited by GDPR and e-Privacy.”

France Digitale has also criticized Apple for its practices on the App Store in recent weeks, saying it hurts start-ups.

Apple only allows developers to launch applications for iPhone and iPad through its iOS smartphone platform. The company has a strict approval process for iOS apps and has faced criticism of fees of up to 30% charged on in-app transactions.

Last year, the European Commission launched antitrust investigations into the rules of Apple’s App Store and its Apple Pay mobile wallet. Epic Games, creator of the popular video game Fortnite, has been particularly critical of Apple. At the time, Apple said it was “disappointing” that the European Commission was hearing “unsubstantiated complaints” from a small number of companies.

The UK competition regulator launched its own antitrust investigation into Apple on March 4. The Competition and Markets Authority said it would investigate Apple over complaints from software developers about the tech giant’s App Store.

Apple said it will work with the CMA to address its concerns. “We believe in prosperous and competitive markets where any big idea can flourish,” said a spokesman for the company earlier this month.

Different rules for Big Tech?

While Europe is cracking down on America’s big tech companies, Brien still thinks companies like Apple are taking a relatively easy route.

He says Apple is not under the same level of privacy scrutiny as French startups and other small businesses.

“We are being investigated all the time,” said Brien. “We need this to stop. Technology regulations should not be aimed primarily at start-ups.”

A CNIL spokesman confirmed to CNBC that he had received the complaint and that he planned to investigate.

Brien said he believed that privacy regulators in other countries could also investigate Apple when they learned of the appeal with which France Digitale questioned.

“This is a huge thing and we believe it is an extremely important case,” he said. “We are talking here about the most valuable technology company and if they are not playing by the rules, who else has to be?”

Apple has positioned itself as a company that takes privacy more seriously than its Silicon Valley neighbors, Google and Facebook.

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