The Italian Competition Authority (AGCM) has saddled Apple with a €98.6 million fine for misusing its privacy policies to interfere with third-party developers.
Italy’s competition authority has imposed a fine of €98.6 million on Apple for allegedly abusing its dominant market position through its App Store practices. Regulators claim Apple created unfair competition in the App Store by imposing stricter privacy rules on third-party developers than on itself.
The Italian Competition Authority, known as AGCM, recently concluded an investigation into the unfair application of Apple’s privacy policies that began in May 2023. A fine of €98.6 million ($115 million) has been imposed on the company.
Apple’s App Tracking Transparency (ATT) feature was introduced in iOS 14.5 back in April 2021 in order to ensure that apps get permission before tracking user activities across other companies’ apps and websites. When users download or update apps, they see a prompt asking if they want to allow tracking.
Italian regulators found that Apple requires its developers to comply with ATT, while Apple itself does not. Additionally, Apple’s consent screen does not meet privacy legislation requirements, which forces developers to ask users for permission twice.
The AGCM said that its investigation was highly complex and conducted in coordination with the European Commission and other international antitrust regulators. The regulator’s 199-page ruling requires Apple to immediately cease these practices and refrain from similar conduct that would violate Italian antitrust law in the future.
Will Apple appeal Italy’s decision?
Apple says it will appeal the decision, but it is not known how long that process may take. The company is likely not required to pay the fine until the appeal concludes. However, Apple has 90 days to report how it will comply with the AGCM’s requirements.
Apple has so far defended its strong privacy protections for users. According to the company, the ATT is a user privacy feature that gives people control over their data, not an anti-competitive tool.
In July, the company appealed against a €500 million fine imposed by the European Union over alleged anti-competitive practices on its App Store. That case focused on Apple restricting app developers from informing customers about alternative offers outside the App Store.
In 2021, AGCM fined Apple and Google €10 million each for aggressive data practices that did not clearly explain how personal data would be used. The authority also previously imposed a €173.3 million fine on Apple and Amazon over alleged limits on selling Apple products on Amazon’s Italian marketplace.
In November, Apple confirmed that its Apple Ads and Apple Maps are in compliance with the Digital Markets Act, leading to a decision on which of the services would receive the gatekeeper label. This designation would impose strict pro-competition obligations and additional regulatory oversight.
French antitrust authorities earlier this year handed Apple a €150 million fine over its app tracking privacy feature, and a similar antitrust investigation into App Tracking Transparency is currently ongoing in Poland.
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