Italy’s Competition Authority fines Apple €98.6 million over App Tracking Transparency policy. The regulator ruled that Apple’s ATT feature, launched in 2021, imposes unfair burdens on developers despite privacy aims.
Fine Details
The Italian Competition Authority (AGCM) imposed a €98,635,416.67 penalty on Apple Inc., Apple Distribution International Ltd., and Apple Italia S.r.l. This targets Apple’s dominant role in iOS app distribution platforms. The fine reflects the infringement’s severity since April 2021, signaling tougher oversight on platform privacy rules.
Investigation Background
Authorities launched the probe on May 2, 2023, extending it to October 8, 2024, with input from the European Commission, other EU watchdogs, and Italy’s Data Protection Authority. They scrutinized ATT’s impact on third-party App Store developers. Findings confirmed ATT’s restrictive effects under competition law.
ATT Policy Issues
ATT mandates Apple’s consent prompt for cross-app tracking, but regulators say it fails privacy standards, forcing developers’ second prompts via their own systems. This double-consent setup cuts ad consent rates, hurting developers’ revenue, advertisers, and smaller apps. Apple imposed it unilaterally, without developer input, deeming it disproportionate to privacy goals.
Competitive Harm and Benefits to Apple
The policy reduces profiling data access, raising advertiser costs and limiting rivals while boosting Apple’s App Store fees and ad business, which skips ATT prompts. AGCM notes Apple could match privacy via less burdensome methods, avoiding exploitative dominance under Article 102 TFEU.
Company Response and Outlook
Apple plans to appeal, defending ATT’s user privacy value. Regulators affirm Apple’s privacy rights but criticize excessive developer burdens amid rising EU scrutiny.