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Italy Fines Apple Nearly €100 Million Over App Privacy Feature

Italy’s competition watchdog has imposed a major fine on Apple, intensifying regulatory scrutiny of the tech giant’s app privacy practices in Europe. The Italian Competition Authority, known as AGCM, announced on Monday that it has fined Apple €98 million for allegedly abusing its dominant position in the mobile application market through its App Store policies.

According to AGCM, Apple violated competition rules by enforcing privacy standards on third-party app developers that were restrictive and unilaterally imposed. The authority stated that Apple operates in a market where it holds a “super-dominant position” due to the App Store’s central role in app distribution on iOS devices.

At the heart of the case is Apple’s App Tracking Transparency (ATT) framework, a feature introduced in 2021. Under ATT, apps must seek explicit user consent via a pop-up notification before tracking their activity across other apps and websites. If users decline, the app loses access to data crucial for targeted advertising.

While Apple has consistently marketed ATT as a privacy-enhancing tool designed to give users greater control over their data, Italian regulators argue that the policy disproportionately harms third-party developers. AGCM said its investigation confirmed the “restrictive nature” of these rules and concluded that they undermine the commercial interests of Apple’s partners, particularly those reliant on advertising revenue.

The watchdog further noted that ATT rules are imposed without negotiation and may tilt the competitive landscape in Apple’s favor. Critics have long claimed that while Apple restricts data access for other developers, it continues to promote and benefit from its own advertising services, creating an uneven playing field.

Italy’s decision follows similar action elsewhere in Europe. Earlier this year, French antitrust authorities fined Apple €150 million over the same app tracking feature. Regulatory bodies in other European countries have also launched investigations into ATT, signaling growing concern over how privacy measures can intersect with competition law.

Apple has maintained that ATT applies equally to all developers, including its own apps, and that protecting user privacy remains a core principle of its ecosystem. However, regulators argue that in markets dominated by a single platform, even privacy-focused policies must be carefully assessed for their competitive impact.

The Italian ruling adds to Apple’s mounting regulatory challenges in the European Union, where authorities are increasingly focused on Big Tech’s market power, transparency, and fair competition. The fine underscores a broader debate: how to balance consumer privacy with healthy competition in digital markets increasingly controlled by a few global players.