Apple faces renewed regulatory pressure in Europe as its privacy-centric App Tracking Transparency (ATT) framework comes under fire for allegedly distorting competition. The latest challenge comes from Italy, where authorities have imposed a significant financial penalty, arguing that the feature places an unfair burden on third-party developers while favoring Apple's own services.
Italy's AGCM Imposes a €98.6 Million Fine on Apple
Italy's competition authority, the Autorità Garante della Concorrenza e del Mercato (AGCM), has concluded a complex investigation and fined Apple EUR 98.6 million (approximately USD 116 million). The regulator determined that Apple abused its dominant market position by unilaterally imposing its App Tracking Transparency rules on third-party app developers and advertisers. The AGCM stated that the terms of the ATT policy were "disproportionate" to Apple's stated data protection goals and harmful to its commercial partners. This investigation was conducted in coordination with the European Commission and other national authorities, highlighting the broader European scrutiny of Apple's practices.
Recent European Regulatory Actions Against Apple:
- Italy (AGCM): EUR 98.6 million fine for abusive practices related to App Tracking Transparency (ATT).
- European Union (DMA): Designated a "gatekeeper" for iOS, iPadOS, and the App Store; fined EUR 500 million for DMA breaches.
- France: Fined EUR 150 million in March 2025 for ATT-related competition issues.
- Netherlands: Facing a lawsuit seeking hundreds of millions in damages over alleged excessive App Store fees.
- Poland, Germany, Romania: Investigating potential abuses of Apple's ATT rules.
- Switzerland: Opened a preliminary investigation into Apple Pay's competitive terms.
The Core Issue: A "Double Prompt" and Unfair Advantage
The central complaint from the Italian regulator revolves around the implementation of ATT on iPhones and iPads within the European Union. The AGCM found that Apple's framework creates a "double prompt" issue, where users are asked for consent twice: once for Apple's ATT system and again to comply with the EU's General Data Protection Regulation (GDPR). The authority argued that Apple could have designed a single, unified consent process but chose not to, thereby imposing "excessively burdensome" requirements on others. Furthermore, the AGCM pointed out that Apple's own first-party apps, such as the App Store, are exempt from this explicit ATT consent requirement, a situation that could provide Apple with a financial advantage in the digital advertising market.
Apple's Response and Broader European Antitrust Landscape
Apple has stated it "strongly disagrees" with the Italian ruling and plans to appeal, asserting that the decision "disregards the important privacy protections" offered by ATT. This fine is the latest in a series of antitrust headaches for Apple in Europe. The company was recently designated a "gatekeeper" under the EU's Digital Markets Act (DMA) for its iOS, iPadOS, and App Store platforms, forcing it to allow third-party app stores. It also faces a separate EUR 500 million fine for DMA breaches and an ongoing antitrust case in the Netherlands regarding App Store fees. Investigations into Apple's practices, including ATT and Apple Pay, are also underway in Poland, Germany, Romania, and Switzerland.
EU "Gatekeeper" Designation Criteria: An entity qualifies as a "gatekeeper" under the Digital Markets Act if it meets these thresholds:
- Financial Size: Market capitalization of EUR 75 billion or EU-derived revenues of at least EUR 7.5 billion in each of the last three business years.
- User Base: 45 million monthly active end users and over 10,000 yearly active business users in the EU.
- Duration: The user base criterion must have been met in each of the last three financial years.
The Future of ATT and Personalized Advertising in the EU
The Italian fine underscores a growing conflict between user privacy frameworks and competition law in the digital age. Regulators are scrutinizing whether privacy features, while beneficial to users, can be implemented in a way that doesn't unfairly hinder competitors. Apple has previously suggested it might have to remove the ATT feature in some European markets due to regulatory pressure, a move that would mark a significant shift in its privacy stance. As the EU continues to enforce the DMA and related competition rules, Apple and other "gatekeeper" companies will be forced to continually adjust their business practices, balancing user privacy, developer relations, and regulatory compliance in one of the world's most important markets.