Apple Fined €98.6 Million for Privacy Policy Violations Requiring Third-Party Developers to Ask Consent a Second Time
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Key Takeaways
- Antitrust penalty: Italy's competition authority fined Apple €98.6 million for abusing its dominant market position through the App Tracking Transparency framework.
- Double consent: The investigation found that Apple's privacy policies require double consent for third-party developers, while Apple's own apps are exempt.
- Regulatory scrutiny: This ruling mirrors similar actions in Europe, which increasingly scrutinize how major tech platforms leverage privacy features to affect competition.
The Italian Competition Authority (AGCM) has concluded a two-year investigation by issuing a substantial penalty against the Cupertino-based tech giant. Italy fined Apple €98.6 million (roughly $116 million) for implementing the App Tracking Transparency (ATT) framework in a way that constitutes an abuse of its dominant position in the mobile app advertising market.
AGCM Rules on App Store Tracking Practices
The regulator’s recent press release alleges that Apple used privacy protocols not solely for data protection, but also to disadvantage third-party developers and competitors.
The core of the ruling focuses on the discriminatory application of consent mechanisms, which the AGCM argues creates an uneven playing field within the iOS ecosystem.
The Authority found that the terms of the ATT policy are imposed “unilaterally” and “harm” Apple’s commercial partners' interests, according to the document (PDF), which calls these measures “excessively burdensome for developers.”
Allegations of Discriminatory Privacy Enforcement
The AGCM's findings suggest that Apple's privacy policy violation stems from a disparity in how consent is gathered. Under the ATT framework enforced in 2021, third-party developers are mandated to display a standardized prompt requesting user permission for tracking.
However, because this prompt does not fully satisfy GDPR requirements, developers must also implement their own consent banners. This results in a "double consent" friction that discourages users from opting in.
“Since user data is a key input for personalised online advertising, the double consent request that inevitably arises from the ATT policy, as implemented, restricts the collection, linking, and use of such data,” AGCM said.
What’s more, the Authority implied these double consents were not necessary, as “Apple could have achieved the same level of privacy protection for its users through less restrictive means of competition.”
Crucially, Apple's proprietary applications and services are not subjected to the same stringent rules.
Apple Responds to Antitrust Fine
In response to the Apple antitrust fine, the company has stated it strongly disagrees with the decision and intends to appeal. Apple maintains that ATT is designed to protect user privacy rather than hinder competition.
However, this ruling adds to the mounting pressure on Apple's operational models in the European Union.
Similar concerns regarding App Store tracking practices have been raised by regulators in France, Poland, and Germany, indicating a concerted regulatory effort to dismantle perceived monopolistic behaviors disguised as privacy enhancements.
In April, Apple was fined €150 million over its app tracking transparency framework, which affected small publishers. Earlier this year, a Siri privacy violations lawsuit resulted in Apple being ordered to pay users $20 per device in a $95 million settlement.
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