Apple hit with €98.6 million antitrust fine in Italy over privacy feature

Apple

Italy’s Competition Authority (AGCM) has imposed a €98.6 million fine on Apple, concluding that the company abused its dominant market position through the design and implementation of its App Tracking Transparency framework.

Introduced with iOS 14.5 in April 2021, App Tracking Transparency requires apps to ask users for explicit permission before tracking their activity across other apps and websites for targeted advertising. If users choose the “Ask App Not to Track” option, apps are blocked from accessing Apple’s advertising identifier, a key tool used by advertisers to personalise ads.

In its decision, the AGCM said it does not oppose Apple’s broader goal of strengthening user privacy and security. However, it argued that the way App Tracking Transparency has been implemented is “disproportionate” and “excessively burdensome” for third-party developers and advertisers.

A central issue highlighted by the regulator is what it describes as a “double consent” problem. In the EU, users are already presented with consent requests under the General Data Protection Regulation (GDPR). On Apple devices, this is layered with a separate App Tracking Transparency prompt, which the AGCM said places an additional and unnecessary burden on developers seeking to fund their apps through advertising.

According to the authority, Apple could have delivered a similar level of privacy protection using measures that were less restrictive to competition. By unilaterally imposing extra consent requirements, the regulator said, Apple distorted the competitive landscape for app developers that rely on advertising revenue.

The AGCM also raised concerns that App Tracking Transparency may generate indirect financial benefits for Apple. While the rules technically apply to Apple’s own apps, the company’s services do not display tracking prompts because Apple says it does not track users across third-party apps and websites. The regulator suggested this dynamic could still advantage Apple’s ecosystem over rivals.

Apple has said it will appeal the ruling. In a statement shared with multiple media outlets, the company defended App Tracking Transparency as a major step forward for consumer privacy, arguing that users should have clear control over how their data is used.

The fine comes amid mounting regulatory scrutiny across Europe. Earlier this year, Apple warned that continued pressure from national regulators in countries including Italy, France, Germany, and Poland, as well as from the European Commission, could eventually force it to withdraw App Tracking Transparency from the EU altogether.