Why Has Italy Slapped A Massive Fine Of $116M On Apple? Tech Giant’s ‘Super-Dominant Position’ In App Store May Have Caused The Big Trouble

Italy’s competition watchdog just hit Apple with a €98.6 million fine. Why? They say Apple abused its dominant spot in the app market with its App Store rules.

This all comes down to Apple’s App Tracking Transparency (ATT) policy, a privacy rule Apple rolled out for iOS devices back in 2021. According to the AGCM, Apple forces third-party app developers to ask users for special permission if they want to collect and link their data for ads. 

Italy Fines Apple €98.6 Million Over App Store Rules

But here’s the kicker: developers have to hit users with the same consent request twice, which the Italian authority says doesn’t line up with privacy standards and just makes things harder for developers.

The AGCM didn’t hold back. They called Apple’s policy “unilateral” and said it hurts Apple’s business partners. Since user data is essential for personalised ads, making developers go through extra hoops limits how much data they can actually use. That means less effective ads and less revenue for app makers who rely on selling ad space.

Italian Regulator Calls Apple’s App Store Policies ‘Disproportionate’

The authority also pointed out that Apple’s rules go way beyond what’s needed to protect user data, calling them “disproportionate.”

AGCM kicked off this investigation in 2023, working with the European Commission and other national regulators. They’re waiting for Apple to respond.

Apple Gets Punished

This isn’t Apple’s first run-in with AGCM either. Back in 2021, the regulator fined Apple €10 million for not explaining clearly how it uses people’s data for commercial purposes.

And it’s not just Apple in the hot seat. AGCM recently fined Infinite Styles Services, the company behind Shein’s European websites, €1 million for greenwashing. 

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