Apple faces another significant regulatory challenge in Europe, this time from Italy's competition authority. The core of the dispute centers on whether the tech giant's strict privacy rules for its App Store, while framed as user protection, are being used to unfairly disadvantage third-party developers and maintain market dominance. This latest fine adds to a growing list of legal and financial pressures Apple is confronting across the European Union regarding its ecosystem's control.
Italy's Competition Authority Imposes a Substantial Fine
Italy's Competition and Market Authority (AGCM) announced on December 22, 2025, that it has fined Apple and two of its subsidiaries EUR 98.6 million (approximately USD 115.5 million). The regulator's decision stems from an investigation launched in May 2023, which concluded that Apple abused its dominant position in the mobile app market. The AGCM asserts that Apple holds "absolute dominance" through the iOS App Store, the sole official gateway for apps on iPhones and iPads, and has leveraged this power to impose unfair conditions on developers.
Key Fine Details:
- Authority: Italy's Competition and Market Authority (AGCM)
- Amount: EUR 98.6 million (approx. USD 115.5 million)
- Date Issued: December 22, 2025
- Reason: Alleged abuse of dominant position in the mobile app market via the App Store.
- Apple's Stance: "Strongly disagrees," will appeal.
The Heart of the Dispute: App Tracking Transparency (ATT)
The investigation specifically focused on Apple's App Tracking Transparency (ATT) framework, introduced in April 2021. ATT requires apps to obtain explicit user permission before tracking their activity across other apps and websites for advertising purposes. While Apple has championed ATT as a landmark privacy feature for users, the Italian regulator contends the implementation was deliberately restrictive. The AGCM alleges Apple imposed "a more restrictive privacy policy" on third-party developers than was necessary to achieve stated privacy goals, thereby putting them at a competitive disadvantage while Apple's own advertising business faced less stringent constraints.
Core Regulatory Allegation: The AGCM claims Apple's App Tracking Transparency (ATT) policy, starting April 2021, imposed "a more restrictive privacy policy" on third-party developers than was proportionate to achieving privacy goals, harming their competitiveness.
Apple's Defense and Planned Appeal
Apple has publicly and strongly disagreed with the AGCM's ruling. In a statement, the company defended ATT, stating it was created "to give users a simple way to control whether companies can track their activity across other apps and websites." Apple emphasized that the rules apply equally to all developers, including itself, and argued that the fine disregards the significant privacy protections the feature offers to consumers. The company has stated it will appeal the decision, reiterating its commitment to defending what it sees as strong and necessary privacy protections in the digital ecosystem.
A Pattern of European Scrutiny on Big Tech
This is not an isolated incident for Apple in Europe. Earlier in 2025, France's competition authority levied a EUR 150 million fine against Apple related to its ATT policies. These actions are part of a broader, concerted effort by European Union regulators to enforce fair competition and curb the power of major technology platforms. The EU's landmark Digital Markets Act (DMA) is the driving force behind this push, already compelling Apple to allow third-party app stores and alternative payment systems within the EU—changes the company has resisted implementing elsewhere.
Context of EU Actions:
- France: Fined Apple EUR 150 million over ATT policies in 2025.
- Digital Markets Act (DMA): EU law forcing Apple to allow third-party app stores and alternative payments in the EU.
- Broader Trend: Part of sustained EU scrutiny on "gatekeeper" platforms like Apple and Google to ensure fair competition.
The Balancing Act: Privacy, Competition, and Innovation
The case highlights a complex tension in the modern digital economy. On one side is the legitimate goal of protecting user privacy from pervasive tracking. On the other is the need to ensure that market-dominant platforms do not use privacy rules as a shield to anti-competitive behavior. Regulators like the AGCM are essentially arguing that Apple's control over the privacy narrative and technical implementation on iOS gives it an unfair ability to shape the advertising market to its benefit, under the guise of user protection. The outcome of Apple's appeal, and similar investigations in other EU nations, will help define where the line is drawn between these competing priorities.
Implications for Developers and the Future of the App Store
For third-party app developers, especially those reliant on advertising revenue, the regulatory pressure offers a glimmer of hope for a more level playing field. The series of EU actions suggests that Apple's historically unilateral control over App Store policies is being systematically challenged. While Apple has made concessions in Europe due to the DMA, it continues to fight rulings it disagrees with. The ongoing legal battles indicate that the rules governing app distribution, monetization, and data privacy on iOS are still very much in flux, with Europe serving as the primary battleground for these changes.