ROME (AP) - Italy's antitrust authority has imposed a substantial fine of 98.6 million euros (approximately $116 million) on Apple due to its App Tracking Transparency (ATT) policy, which the authority claims restricts competition within the App Store. This decision underscores ongoing scrutiny of Apple’s practices in the competitive landscape of app distribution and digital advertising.
According to a statement released by the Italian authority, Apple has misused its dominant market position through the implementation of its ATT policy, which requires third-party applications to obtain consumers' explicit consent before collecting data for targeted advertising purposes. This requirement, which became effective in April 2021 following an update to the Apple operating system that powers iPhones and iPads, was initially introduced as a measure to enhance user privacy but has since drawn criticism from competitors within the tech industry.
The antitrust authority noted that while the ATT policy itself wasn't explicitly condemned, the mechanism it employs mandates that app developers ask users for consent on two separate occasions to comply with the stringent privacy regulations enforced in Europe. This double consent requirement has been deemed detrimental to developers, particularly those whose revenue models heavily depend on selling advertising space. The authority stated that the additional layer of consent imposes an unfair burden on these developers, advertisers, and advertising intermediation platforms, thereby constraining their ability to operate effectively in the market.
Furthermore, the Italian regulator asserted that the demand for double consent is "disproportionate" to the primary objective of safeguarding user data, suggesting that Apple's approach may be stifling fair competition in app distribution. This ruling echoes similar concerns raised by the French antitrust watchdog, which recently fined Apple 150 million euros (around $162 million) regarding similar issues associated with its consent practices.
While Apple has yet to respond publicly to the latest fine, the company has consistently defended its framework for user privacy. In 2023, prior to the fine, Apple indicated its intention to engage with the Italian antitrust authority to clarify its policies and legitimate its practices regarding user data protection. The company’s position highlights the ongoing tension between privacy advocacy and the operational realities of competing in a digital advertising landscape.
This ruling by Italy's antitrust authority reflects broader concerns over the governance of major tech companies and how their policies can inadvertently hinder smaller players in the digital ecosystem. As regulators around the world continue to investigate and evaluate Big Tech's influence over competition and market practices, this fine could serve as a significant precedent for future decisions regarding data privacy and competitive fairness in the tech industry.
