In a major blow to Big Tech’s "walled garden" strategy, Italy’s antitrust authority (AGCM) has imposed a €98.6 million (~$115 million) fine on Apple Inc. and two of its subsidiaries. The regulator concluded that Apple abused its "super-dominant" position in the app distribution market by imposing restrictive and discriminatory privacy rules on third-party developers.
The Core of the Dispute: App Tracking Transparency (ATT)
The investigation, which began in May 2023, focused on Apple’s App Tracking Transparency (ATT) framework introduced in 2021. While Apple markets ATT as a consumer-first privacy tool, the AGCM found that its implementation creates an unfair playing field.
The AGCM’s key findings include:
- Unilateral Terms: Apple allegedly imposed privacy conditions on third-party developers without negotiation, harming their commercial interests.
- The "Double Consent" Burden: Third-party apps were forced to show Apple's standardized prompt and additional GDPR-related requests. This "double friction" discouraged users from opting in, directly cutting the ad revenue of rival developers.
- Self-Preferencing: The regulator noted that Apple’s own apps did not face the same hurdles, as Apple does not track users across other companies' apps in the same manner, effectively giving its own advertising services an edge.
The Regulatory Verdict
The Italian watchdog stated that the terms were "not proportionate" to the goal of protecting user privacy. According to the 199-page ruling, Apple could have achieved high privacy standards without distorting competition.
"Apple holds an absolute dominance in its dealings with third-party developers. The double consent request restricts the collection and linking of data, which is a key input for personalized advertising." — AGCM Official Statement
Apple’s Response: "Strongly Disagree"
Apple has confirmed it will appeal the decision. In a statement, the company defended its framework, asserting that ATT gives users a simple way to control their data.
"We believe that privacy is a fundamental human right," an Apple spokesperson said. "The rules apply equally to all developers, including Apple. We will continue to defend strong privacy protections for our users as we appeal this decision."
Wider Implications for Europe
This ruling is part of a broader "regulatory pincer" closing in on Apple across the European Union.
- Germany: The competition authority is currently reviewing similar concerns regarding ATT.
- Poland: A similar investigation into Apple's privacy policies is ongoing.
The EU Commission: Apple was recently hit with a separate €500 million fine for breaches related to the Digital Markets Act (DMA).
Apple now has 90 days to report to the AGCM on how it intends to cease the "distortive behaviors" identified in the probe, though this deadline may be stayed pending the appeal process.
