Background on Apple and Relevance
Apple, the American technology giant, has been fined $115 million by Italy’s competition authority for allegedly abusing its dominant position in the mobile app market. The Italian Competition and Market Authority (AGCM) imposed this penalty on Apple and two of its divisions, stating that the company violated European regulations through its App Store.
Details of the Investigation
The investigation began in May 2023, with the AGCM claiming that Apple had penalized third-party app developers by implementing a stricter privacy policy starting from April 2021.
- Apple reportedly enforced a unilateral policy for data collection and linking purposes for advertising through an in-app screen called the App Tracking Transparency (ATT) request.
- This policy was said to disadvantage Apple’s business partners and not align with privacy regulations, according to the AGCM.
- Moreover, developers were required to duplicate consent requests for the same purpose.
Collaboration with European and International Regulators
The AGCM mentioned that their investigation was complex and conducted in coordination with the European Commission and other international competition and antimonopoly regulators.
Impact on Developers
The stricter privacy policy imposed by Apple through its App Store reportedly created challenges for third-party app developers. Developers were obligated to obtain specific user consent for data collection and linking related to advertising purposes via the ATT screen. Additionally, developers were required to duplicate consent requests for the same purpose, adding unnecessary complexity and burden.
Apple’s Response
As of the time this article was written, Apple has not yet responded to requests for comment.
Key Questions and Answers
- What is the main issue with Apple’s App Store? The Italian competition authority claims that Apple abused its dominant position in the mobile app market by imposing a stricter, unilateral privacy policy on third-party developers.
- What specific actions did Apple take? Apple reportedly enforced a stricter privacy policy starting from April 2021, requiring developers to obtain specific user consent for data collection and linking related to advertising purposes via the ATT screen. Developers were also obligated to duplicate consent requests for the same purpose.
- What was the outcome of the investigation? The Italian Competition and Market Authority (AGCM) fined Apple $115 million for violating European regulations through its App Store.
- Was the investigation conducted independently or in collaboration with other regulators? The AGCM’s investigation was complex and conducted in coordination with the European Commission and other international competition and antimonopoly regulators.
