Italy Imposes a $115 Million Antitrust Fine on Apple Over App Store Privacy Policy
In Focus
- The antitrust watchdog alleged the privacy policy created unequal conditions
- Apple did not face data restrictions it imposed on third-party developers
- The regulator collaborated with the European Commission in the probe
Apple has been fined €98.6 million (about $115 million) by Italy’s antitrust watchdog Competition and Market Authority (AGCM) for allegedly abusing its dominance in the mobile app distribution market. According to Reuters, Italy’s Apple App Store antitrust fine follows a probe into the tech company’s privacy policy.
Antitrust Probe Focused on ATT Terms
The AGCM Apple penalty is a culmination of a probe that started in May 2023. The probe focused on Apple’s App Tracking Transparency (ATT) privacy policy, which the company introduced in April 2021.
The policy allegedly created unequal conditions by imposing stricter privacy rules on third-party developers, compared to those applied on Apple. Third-party app developers had to obtain additional consent to collect data and link it for advertising purposes. Apple did not face similar restrictions, but could use specific data for its own advertising.
“Third-party developers are required to obtain specific consent for the collection and linking of data for advertising purposes via a screen imposed by Apple, the so-called ATT prompt, which, however, is not sufficient to meet the requirements of privacy legislation,” Italy’s Competition Watchdog stated as per National Technology News.
Apple Faces Growing Scrutiny Over App Store
Apple’s iOS developers regulatory penalty comes at a time when the iPhone manufacturer is facing increased scrutiny over its App Store practices in the U.S. and the EU. The tech giant risks being sued in the Netherlands after an EU court ruled that an App Store antitrust case can be heard by a Dutch court.
Apple dominates the app market through the App Store. The mobile app platform is the only channel through which developers can reach iOS users, an aspect that places creators at a disadvantage.
Recently, EU developers demanded regulatory action against Apple, claiming that its App Store fees disadvantages them. While announcing the Apple AGCM antitrust penalty, Italian regulators termed provisions of the ATT policy as harmful to the company’s business partners.
“The terms of the ATT policy are imposed unilaterally, they are detrimental to the interests of Apple’s business partners and are not proportionate to achieving the objective of privacy, as claimed by the company,” the Italian Watchdog said as per Reuters.
The App Store Probe Was a Collaborative Effort
The AGCM coordinated with the European Commission and the Italian Data Protection Authority to investigate Apple’s ATT privacy policy. The probe was part of a wider EU initiative to curb the dominance of large technology firms in digital markets.
Apple recently opened the App Store to alternative marketplaces in Japan to comply with the country’s Mobile Software Competition Act. The new law is aimed at boosting competition in the country’s smartphone market.
The EU has been tightening scrutiny over major companies as part of enforcing the Digital Markets Act (DMA). The DMA is aimed at ensuring fair competition by keeping large firms from abusing their market dominance
