Italy fines Apple €98.6 million over App Tracking Transparency practices

Italy’s competition authority has fined Apple €98.6 million ($115 million), concluding that the company abused its dominant position in the mobile app market through the implementation of its App Tracking Transparency (ATT) framework.

The Autorità Garante della Concorrenza e del Mercato (AGCM) said Apple’s rules governing data tracking and consent on iOS devices placed disproportionate burdens on third-party app developers distributing software via the App Store. The investigation, launched in May 2023 and conducted in coordination with the European Commission and other national regulators, focused on changes Apple introduced in April 2021.

ATT requires iPhone and iPad apps to seek explicit user permission before tracking activity across other apps and websites for advertising purposes. According to the AGCM, Apple mandated that third-party developers obtain consent through the ATT prompt, while that prompt itself did not fully satisfy EU privacy law requirements. As a result, developers were compelled to request user consent a second time to comply with GDPR rules, creating what the regulator described as a duplicative and restrictive process.

The watchdog said the ATT terms were imposed unilaterally and were not proportionate to Apple’s stated privacy objectives. While acknowledging that Apple may pursue measures to enhance user privacy, the authority argued that the same level of protection could have been achieved through less restrictive means that would not disadvantage developers and advertisers.

Apple said it strongly disagrees with the decision and plans to appeal. In a statement, the company said ATT was designed to give users clear control over whether their data can be used for tracking and applies equally to all developers. Apple also maintained that its own apps do not prompt users in the same way because the company does not track activity across third-party apps and websites.

The Italian ruling adds to a growing list of regulatory actions in Europe examining the competitive impact of Apple’s privacy policies. Apple has faced similar scrutiny in countries including France and Germany, and the company has previously warned that sustained regulatory pressure could force changes to how ATT operates in the European Union.