Italy Slaps Apple With Major Fine Over App Tracking Rules

Italy’s antitrust authority has fined Apple nearly 100 million euros. The penalty was announced this week. It targets Apple’s App Tracking Transparency feature.

The regulator says Apple’s privacy tool harms competition. The feature requires apps to get user permission to track. This is a significant challenge for the digital ad industry.

Regulator Cites Harm to Developers and Advertisers

The fine amounts to 98.6 million euros. That is about 116 million US dollars. Italy’s Competition Authority (AGCM) issued the penalty.

The authority stated Apple abused its dominant position. It found the App Tracking Transparency rules “disproportionate.” The rules are also described as harmful to third parties.

Specifically, the regulator criticized a “double consent” requirement. EU users see both Apple’s prompt and GDPR consent screens. This creates an excessive burden for app developers.

Apple Vows to Appeal, Defends User Privacy

Apple strongly disagrees with the Italian decision. The company said it will appeal the fine. It defended App Tracking Transparency as a vital privacy tool.

Apple states the feature gives users control over their data. It applies equally to all developers, including Apple itself. The company says it does not track users across apps.

This fine is part of broader EU scrutiny. Other countries like France and Germany have raised concerns. The European Commission is also examining the practice.

This major fine represents a direct regulatory challenge to Apple’s privacy framework in Europe. The outcome of Apple’s appeal will be closely watched across the tech and advertising industries.

A quick knowledge drop for you

What is App Tracking Transparency?

It is an Apple iOS feature introduced in 2021. It forces apps to ask for user permission before tracking their activity across other apps and websites. Users can select “Ask App Not to Track” to deny access.

Why did Italy fine Apple?

Italy’s antitrust regulator fined Apple for abusing its market dominance. It ruled that the App Tracking Transparency feature is excessively restrictive for developers and advertisers, harming competition within the EU market.

How much is the fine?

The fine is 98.6 million euros. This is equivalent to approximately 116 million US dollars. It is one of the largest antitrust penalties levied against Apple in a single EU member state.

What has Apple said about the fine?

Apple has stated it will appeal the decision. The company argues that App Tracking Transparency is a pro-privacy feature that gives users a choice. It says the rules apply evenly to all developers.

Could this feature be removed in Europe?

Earlier this year, Apple warned it might have to remove App Tracking Transparency in the EU. This was due to mounting regulatory pressure from several national authorities and the European Commission itself.

Who does this fine impact most?

The fine primarily impacts the digital advertising ecosystem. App developers and advertisers who rely on user tracking for ad personalization and measurement are most affected by Apple’s policy.