Italy regulator fines Apple $115 million over alleged App Store privacy violations

Italy’s competition watchdog, the AGCM, said in a statement on Monday that it has fined US technology company Apple and its two subsidiaries €98.6 million ($115 million) over charges that the company has engaged in abusive dominance in the mobile app market. According to the AGCM, Apple has an “absolute dominance” over third-party app developers, which makes it a sector that requires extra scrutiny.

The case, which was opened in May 2023, related to alleged restrictions imposed by Apple regarding a more stringent privacy regime for third-party developers of apps, from April 2021. In the AGCM's opinion, the restrictions were in breach of European competition law, as they created an uneven situation for developers using the App Store to access their market.

The heart of the issue is the App Tracking Transparency system developed by Apple, which forces third-party app developers to request user consent before proceeding with data collection for advertising. In its argument, the regulator claimed that Apple forced app developers to abide by the App Tracking Transparency rules that were disproportionate to protecting consumers’ right to data privacy.

The AGCM also stated that the developers were forced to repeat the process of asking for consent for the same purpose. This made things difficult for the developers’ business interests. According to the authority, it did not comply with the European privacy standards.

Apple has vehemently disagreed with the decision, stating that it fails to consider the privacy protections offered by ATT. It argued that the tool was intended to provide users with an easy means to decide whether to allow tracking on apps, sites, or both. Apple stated that the guidelines will affect all app developers, including Apple apps themselves.

The company has confirmed that it intends to appeal against the ruling and reaffirmed its dedication to protecting the rights of its end-users to have adequate levels of privacy.

The AGCM reported that the case was especially complex and that the authorities worked very closely with the European Commission and other international competition authorities on this matter, “due to the current broader regulatory interest in the role and power of large technology platforms in the digital economy.”