Italy’s antitrust authority, the AGCM, has fined Apple and two of its subsidiaries €98.6 million ($115.53 million). The regulator announced the penalty on Monday. It follows an investigation into Apple’s alleged abuse of its dominant position in the mobile application market.
The watchdog claims that Apple used its “absolute dominance” over the App Store to violate European competition rules. Specifically, the probe focused on how Apple handles third-party developers compared to its own services.
The Dispute Over Privacy Policies
The investigation began in May 2023. It focused on the App Tracking Transparency (ATT) framework that Apple introduced in 2021. The AGCM alleges that Apple imposed a “more restrictive” privacy policy on external developers than it did on itself.
The regulator highlighted several key issues:
- Unilateral Terms: Apple allegedly forced developers to accept terms that harmed their business interests.
- Redundant Requests: Developers were forced to ask users for data consent multiple times for the same purpose.
- Lack of Proportionality: The AGCM argued that Apple’s restrictive measures went beyond what was necessary to protect user privacy.
Consequently, the regulator concluded that Apple’s process did not comply with established privacy regulations.
Apple’s Response and Planned Appeal
Apple has stated that it “strongly disagrees” with the decision. The tech giant maintains that its policies were designed to give users more control over their personal data.
Apple’s defense includes the following points:
- User Control: The company says ATT was created to help users manage how they are tracked across apps.
- Fair Application: Apple insists the rules apply equally to all developers, including its own teams.
- Defense of Privacy: The firm has confirmed it will appeal the fine, reiterating its commitment to “strong privacy protections.”
A Coordinated European Effort
The AGCM noted that the investigation was highly complex. Because of the nature of the digital market, the Italian authority worked closely with the European Commission. They also coordinated with other international antitrust regulators to reach this conclusion.
This fine marks another significant step by European nations to regulate the market power of global technology giants.
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