Italy fines Apple $115M for antitrust breach in App Store

Italy's antitrust regulator, the AGCM, has imposed a fine of €98.6 million (approximately $115 million) on Apple for abusing its dominant position in the mobile application market. The authority determined that Apple’s App Tracking Transparency (ATT) framework imposed unfair commercial conditions on third-party app developers, ultimately harming competition in the digital advertising sector.

The "Double Consent" Mechanism at the Core of the Case

The investigation focused on Apple's implementation of ATT, a privacy feature introduced in 2021 that requires apps to obtain user permission before tracking their data across other companies' apps and websites. The AGCM concluded that Apple's specific design—forcing developers to request user consent twice for the same data tracking purpose—was not required to achieve legitimate privacy goals. This "double consent" process was deemed excessive and created an unnecessary barrier, limiting the ability of developers and advertisers to collect data for personalized ads, a key revenue source for many free apps.

A "Super-Dominant" Position and European Legal Breach

The Italian authority, coordinating with the European Commission and other national bodies, classified Apple as holding a "super-dominant" position in the market for iOS app distribution. It ruled that Apple's unilateral imposition of these terms violated Article 102 of the Treaty on the Functioning of the European Union (TFEU), which prohibits the abuse of a dominant market position. The regulator stated the ATT policy's terms were "disproportionate" to Apple's stated privacy objectives, arguing the same level of user protection could be achieved with a simpler, single-step consent process that was less damaging to competitors.

Broader Context of Global Tech Scrutiny

This fine represents another significant regulatory challenge for Apple in Europe, where it faces ongoing antitrust scrutiny over its App Store practices, including fees and payment systems. While Apple has consistently defended ATT as a cornerstone of its user privacy commitment, regulators are increasingly examining whether such policies, while privacy-positive on the surface, can also be leveraged anti-competitively. The ruling underscores the tension between privacy regulation and market fairness in the digital economy, setting a potential precedent for how other authorities may assess similar dominant platform rules.