Italy Slaps Apple With $115 Million Fine: What Triggered the Penalty and Apple’s Response

Italian regulators accused Apple of abusing its App Tracking Transparency rules, intensifying Europe’s wider crackdown on Big Tech and prompting a legal challenge from the iPhone maker.
Italy Slaps Apple With $115 Million Fine: What Triggered the Penalty and Apple’s Response
Italy Slaps Apple With $115 Million Fine: What Triggered the Penalty and Apple’s ResponseThe Bridge Chronicle
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Italy’s antitrust authority, the AGCM, has slapped a €98.6 million ($115.53 million) fine on Apple and two of its subsidiaries after probing alleged market abuse. Regulators said the iPhone maker exploited its “absolute dominance” in the mobile app ecosystem to disadvantage third-party developers, a move that underscores Europe’s intensifying push to rein in Big Tech and enforce a fairer balance between user privacy and competition.

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Why Apple has been fined?

The investigation began in May 2023, focusing on Apple's App Tracking Transparency (ATT) system. Introduced in April 2021, ATT requires apps to secure clear user permission before monitoring their data across other companies' apps and websites for advertising purposes.

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The AGCM argued that Apple's restrictive policies were "disproportionate" to their declared privacy objectives. The regulator also observed that these policies put third-party developers at a disadvantage by making data collection more difficult compared to Apple's own services. AGCM mentioned that Apple forced developers to repeatedly ask for consent for the same purposes, creating inconvenience for both users and businesses.

"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 regulator said in a statement, as per news agency Reuters.

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Apple announced its intention to challenge the penalty, firmly contesting the AGCM's findings and asserting that the decision overlooks users' essential right to manage their personal information. The company has consistently argued that its policies aim to safeguard privacy rather than hinder competitors. The Italian ruling contributes to Apple's expanding array of antitrust issues globally, including current legal disputes in India concerning claims of exploiting its dominant role in its app ecosystem.

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