Italy fines Apple $115 million: Here’s why and what the iPhone maker said

Italy’s antitrust watchdog, the AGCM, has imposed a 98.6 million euro ($115.53 million) fine on Apple and two of its subsidiaries, a report has said. The penalty, which follows an investigation into alleged market abuse, is imposed as regulators claim that the iPhone maker used its “absolute dominance” in the mobile app market to unfairly penalise third-party developers.

The ruling essentially marks an escalation in Europe’s push to regulate how Big Tech manages balance between user privacy and fair competition.

Why Italy regulator has fined Apple

The investigation began in May 2023 and it focused on Apple’s App Tracking Transparency (ATT) framework. ATT was introduced in April 2021 and the feature requires apps to ask for a user’s explicit permission before tracking their data across other companies’ apps and websites for advertising purposes.The AGCM alleged that Apple set restrictive policies that were “not proportionate” to the stated objective of privacy. The regulator said that it also harmed third-party developers by making data collection more difficult than it allegedly is for Apple’s own services. According to AGCM, Apple forced developers to duplicate consent requests for the same purposes, creating friction for users and businesses alike.

"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..

Apple vows to appeal fine

Apple hit back at the ruling, stating it “strongly disagrees” with the AGCM’s findings. The tech giant argued that the regulator’s decision disregards the fundamental right of users to control their personal information.Earlier this year, Apple also filed a constitutional challenge in the Delhi High Court against the country’s revamped antitrust laws. The tech giant warned that new regulations could expose the company to a staggering $38 billion fine, which may be among the largest corporate penalties in history.The legal battle is the culmination of a 2022 investigation sparked by complaints from Match Group and various Indian startups. The CCI’s findings suggest that Apple has maintained an "abusive" monopoly over its ecosystem.