By Jonathan Stempel
A federal judge has made a significant ruling in a lawsuit against Apple (NASDAQ: AAPL) regarding the privacy of iPhone, iPad, and Apple Watch users. The lawsuit alleges that Apple violated user privacy by collecting personal data through its proprietary apps, including the App Store, Apple Music, and Apple TV.
U.S. District Judge Edward Davila in San Jose, California, dismissed most claims related to the "Allow Apps to Request to Track" setting on Apple devices. However, some claims regarding the "Share [Device] Analytics" setting were allowed to proceed.
Users claim that Apple misled them by assuring that disabling these settings would limit data collection, only to continue collecting, storing, and using their data without consent. This lawsuit is part of a larger trend of tech companies facing legal action over data privacy issues.
In his decision, Judge Davila noted that Apple had made it clear that the "Allow Apps to Request to Track" setting applied to other companies' apps and websites, making it unlikely that users would believe turning it off would stop data collection by Apple's own apps.
However, users were found to have plausibly withdrawn consent by disabling the "Share [Device] Analytics" setting, which Apple uses to improve its products and services.
Investors should keep an eye on this case as it unfolds. The outcome could have significant implications for Apple and its data collection practices.
For more information, the case is titled In re Apple Data Privacy Litigation, and it is being heard in the U.S. District Court for the Northern District of California under case number 22-07069.
Stay tuned for updates as this legal battle continues.
Analysis: The lawsuit against Apple highlights the growing concern over data privacy in the tech industry. Investors should be aware of the potential impact on Apple's reputation and business practices. If Apple is found liable, it could face significant financial penalties and changes to how it collects and uses user data. This case serves as a reminder for investors to consider the legal and ethical implications of the companies they invest in.
