Bea Beltran Tech 01.05.2023 04:Jan AM EST

Apple Gets $8.5 Million Fine for Collecting User Data for Ads

Apple appears to be collecting user data without their permission in order to display targeted ads. This move by the tech giant urged the CNIL, a data protection authority in France, to issue an $8.5 million fine.

Apple's Promise of Protected Privacy

The iPhone manufacturers are known for their top-tier security when it comes to the personal data of their users. However, it looks like it does not apply when it comes to harvesting data to make for better ad displays.

An issue has been brought to the surface concerning French users of iPhone, specifically those who still have the iOS 14.6 version. According to CNIL, Apple deposited or wrote identifiers on their terminals to put up specific ads for users, all without their consent.

The ads in question are search ads that can be found in the App Store, which brings in the topic of their commercial practices. Apple responded to the actions of the CNIL against them, saying that they will appeal, according to Gizmodo.

An Apple spokesperson addressed the situation, saying that they were disappointed in the CNIL's decision, considering they already know how the system of search ads works in the App Store, which they claim prioritizes user privacy.

The collection of data is only an issue for iPhones that still run on iOS 14.6 or below. The users within the bracket have their Apple Personalized Advertising privacy settings turned on automatically, which is the default setting.

CNIL stated that it was a violation of EU privacy law, which falls under the ePrivacy Directive of 2002. Nicolas Rieul, the president of the French digital marketing trade group Alliance Digitale, said that Apple has finally been caught red-handed.

Seeing as Apple has made its data protection services one of its selling points, the digital marketing trade group pointed out that they were practicing misleading and deceptive advertising on a large scale, and the French authorities should address it.

Not the Best Time for a Fine

It's never good to receive a fine, and even if $8.5 million is probably just spare change for the tech company, it's still not a good look especially since Apple has not been faring well lately. The company's market cap just fell below $2 trillion, according to CNN.

This is a huge loss for the manufacturers considering that it became $3 trillion worth in value just a year ago. Basically, it lost ⅓ of its value. Apple is not alone when it comes to having losses considering the economy and restrictions, but it is still a significant loss.

The 31% drop in market value is still not as bad as Amazon, which went down 50%, and Meta lost about 63%. Its shares dropped almost 4%, which was due to reports about the decline in consumer demand.

With the huge losses of Amazon and Apple alike, both companies have lost $1 trillion in market value, with Amazon being the first and Apple following after.