Apple Penalized $116 Million for Privacy Guidelines

Italy's competition watchdog has imposed a fine exceeding €98 million (roughly $116 million) on Apple, critiquing the stringent privacy regulations it has enforced upon external app developers.

The Italian Competition Authority (AGCM) accused Apple of exploiting its significant app store market dominance by compelling developers to comply with excessive data collection terms. These terms, they argue, surpass what existing privacy laws necessitate, especially when contrasted with Apple's own app requirements.

Challenging App Tracking Practices

The focus of this substantial fine is Apple's App Tracking Transparency (ATT) protocol, introduced in 2021. This policy mandates third-party apps to request user consent twice for tracking data across different apps and internet platforms.

In contrast, native iOS applications can achieve similar permission with just a single step. The AGCM contends that the dual-consent process has decreased user approval rates for advertisement targeting, negatively impacting developers who rely heavily on custom ad revenue.

Concerns Over Fair Practices

According to the AGCM, the stipulations of Apple's ATT strategy, imposed unilaterally, disadvantage its commercial partners. They argue the dual-consent requirement is unreasonable, suggesting an alternative method where once would suffice for data profiling permission that still ensures robust user privacy without overburdening developers.

Responding to the AGCM's allegations, Apple has stated its strong disagreement with this decision and plans to challenge it. The company emphasizes its dedication to maintaining comprehensive privacy safeguards.