French competition regulators are investigating Apple's (AAPL, Financials) App Tracking Transparency tool over concerns that it may violate antitrust laws, potentially harming digital advertisers and mobile gaming publishers, according to a Reuters report.

Early next month, authorities might decide whether to apply fines or demand Apple to change or stop the function in France, the report said.

Launched in 2021, the technology calls for applications to monitor data for advertising only after getting user consent. Regulators are looking at whether Apple has an unfair advantage by raising ad expenses on its platform, therefore favoring its own offerings. Gaming businesses and digital marketers contend it reduces the competitiveness in the mobile advertising market.

Apple has defended the function, saying it provides transparency and control thus improving customer privacy. Critics of the case point out that it highlights the larger argument between customer privacy and market fairness as it limits third-party advertising while mostly unaltered Apple's own offerings remain.

Apple also deals with legal difficulties in the United Kingdom, where the government has mandated them to build a backdoor allowing access to iCloud data. Apple deleted its Advanced Data Protection tool from the United Kingdom instead of complying, therefore restricting access for new users and asking current ones to turn off it. The tool, according to the corporation, ensures only users may access their iCloud data, therefore safeguarding privacy.

Demand from the United Kingdom has attracted worldwide criticism. Citing issues over customer privacy and government monitoring, U.S. Director of National Intelligence Tulsi Gabbard described it as a flagrant breach of American liberties.

Apple's regulatory investigation in the United Kingdom and France might establish standards for future behavior all over Europe and beyond. Globally authorities comparing consumer safeguards versus market competitiveness are already looking at the company's App Store policy and advertising operations in more general antitrust terms.