The Italian Competition Authority has imposed a fine of €98,635,416.67 on Apple Inc., Apple Distribution International Ltd., and Apple Italia S.r.l. for abusing its dominant position in the market for platforms used by developers to distribute apps to iOS users. The decision focuses on the App Tracking Transparency (ATT) policy, introduced by Apple in April 2021.
Scope of the Investigation
The Authority conducted an extensive investigation in coordination with the European Commission, other national competition authorities, and the Italian Data Protection Authority. The probe, opened on 2 May 2023 and extended on 8 October 2024, examined whether Apple’s ATT policy imposed unfair restrictions on third-party app developers distributing apps via the App Store.
Findings on App Tracking Transparency (ATT)
The ATT policy requires developers to use Apple’s system prompt to obtain user consent for tracking and linking data for advertising purposes. However, the Authority found that the ATT prompt does not satisfy privacy law requirements for developers.
As a result, developers must request a second consent through their own consent management platform (CMP) for the same purpose. This leads to a double consent requirement, which the Authority identified as restrictive and burdensome.
Why ATT Is Considered Anti-Competitive
The Authority concluded that Apple’s ATT policy:
- Is imposed unilaterally without prior consultation with developers
- Harms the interests of Apple’s commercial partners
- Is disproportionate to Apple’s stated privacy objectives
The double consent process reduces consent rates for advertising profiling, negatively impacting:
- Developers who rely on advertising revenue
- Advertisers and ad intermediary platforms
- Smaller developers with limited access to data, making profiling more difficult
The investigation confirmed actual market effects, including reduced revenues for developers and advertising platforms and higher costs for advertisers.
Coordination with Data Protection Authorities
The Italian Data Protection Authority highlighted that Apple could have achieved equivalent user privacy protection without requiring double consent, for instance by allowing developers to collect valid consent in a single step.
Financial Benefits to Apple
The Authority also noted that ATT potentially benefits Apple financially, including:
- Increased App Store commissions collected from developers
- Growth of Apple’s own advertising business, which is not subject to the same ATT restrictions
Outlook
The Italian Competition Authority acknowledges Apple’s right to implement privacy safeguards for iOS users but emphasizes that the ATT policy as implemented is excessively restrictive, imposing unnecessary burdens on third-party developers. The conduct has been classified as exploitative abuse of a dominant position, in breach of Article 102 TFEU, and has been ongoing since April 2021.
The imposed €98.6 million fine reflects the severity and the duration of the infringement and signals stricter scrutiny of platform-level privacy policies that negatively impact competition.