Apple slapped with $116 million fine for privacy violations in app prompts

Italy Fines Apple €98 Million for Excessively Burdensome Privacy Rules

In a significant move, Italy’s antitrust regulator has imposed a hefty fine of over €98 million on Apple for what it deems as “excessively burdensome” privacy regulations enforced on third-party applications. The Italian Competition Authority (AGCM) has accused Apple of misusing its dominant position in the app store market by imposing disproportionately stringent terms related to data collection, surpassing the requirements of privacy laws and contrasting with regulations applicable to native iOS apps.

The focal point of the penalty is Apple’s App Tracking Transparency (ATT) policy, introduced in 2021, mandating third-party developers to solicit user consent twice for tracking their data across various apps and websites. Notably, Apple’s own apps can secure this permission with a single tap. AGCM contends that the dual consent requirement has led to a decline in user approval rates for advertising profiling, adversely impacting developers reliant on revenue stemming from personalized advertisements.

AGCM remarked, “The Authority determined that the terms of the ATT policy are unilaterally enforced, prejudicing the interests of Apple’s business affiliates. The dual consent request renders the ATT policy disproportionate, as Apple ought to have ensured equivalent privacy safeguards for users by enabling developers to procure profiling consent in a single step.”