Italian Antitrust Authority Slaps Apple with Major Fine
In a landmark decision that could reshape digital privacy and competition policies across Europe, Italy's Competition Authority (AGCM) has imposed a €98.6 million (approximately $116 million) fine on Apple for abuse of its dominant market position. The penalty, announced on December 22, 2025, targets Apple's App Tracking Transparency (ATT) policy, which the regulator found to be 'disproportionate' and harmful to third-party developers.
The Core of the Controversy
The investigation, conducted in coordination with the European Commission and other national competition authorities, focused on Apple's ATT framework introduced in April 2021. According to the AGCM, Apple's implementation creates what regulators call a 'double consent' mechanism that forces third-party app developers to request user permission twice for the same data collection purposes.
'The terms of the ATT policy are imposed unilaterally and harm the interests of Apple's commercial partners,' stated the authority in its official press release. 'They were also found to be disproportionate to the achievement of the company's stated data protection objectives.'
How the ATT Policy Works Against Developers
Under Apple's system, third-party developers must obtain specific consent for data collection through Apple's ATT prompt. However, the authority determined this prompt doesn't meet privacy legislation requirements, forcing developers to implement additional consent mechanisms. This creates a situation where users are asked for permission twice for essentially the same purpose.
Since user data serves as a crucial input for personalized online advertising, this double consent requirement significantly restricts data collection, linking, and usage. The AGCM argues this disproportionately harms developers whose business models rely on advertising revenue, as well as advertisers and advertising intermediation platforms.
Apple's Dominant Position Under Scrutiny
The authority found that Apple holds a 'super-dominant position' in the market for supplying platforms for online distribution of apps to iOS users through its App Store. This market power, combined with what regulators view as restrictive practices, constitutes a breach of Article 102 of the Treaty on the Functioning of the European Union (TFEU).
'The double consent request renders the ATT policy disproportionate,' the authority concluded, 'since Apple should have ensured the same level of privacy protection for users by allowing developers to obtain consent to profiling in a single step.'
Broader European Context
This Italian action comes amid growing European scrutiny of major tech platforms. Earlier in 2025, the European Commission fined Apple €500 million for breaching the Digital Markets Act (DMA), specifically for anti-steering obligations related to alternative payment methods. The DMA, which came into full effect in 2024, designates Apple as a 'gatekeeper' and requires it to allow third-party app stores on iPhones.
According to European Commission documents, these regulatory actions aim to ensure fair competition and consumer choice in digital markets. The Italian case represents a significant intersection of competition law and data privacy regulations.
Industry Impact and Reactions
The fine has significant implications for the app development ecosystem. Smaller developers have reportedly struggled with declining ad revenue as users increasingly decline personalized ads under the ATT system. Meanwhile, Apple has seen growth in its own advertising services and continues to collect App Store commissions.
Apple has confirmed it will appeal the decision, defending ATT as providing critical privacy protections that apply equally to all developers. In a statement reported by 9to5Mac, Apple maintained that its services like Siri, Maps, FaceTime, and iMessage are designed to prevent cross-service data linking.
What Happens Next?
The appeal process could take months or even years, but the decision already signals a shift in how European regulators approach the intersection of privacy and competition. The case establishes that privacy measures, while important, cannot be used to unfairly disadvantage competitors or reinforce market dominance.
As Reuters reported, this action adds to ongoing global regulatory pressure on major tech platforms. Similar antitrust investigations are underway in Germany, France, and Brazil, suggesting that Apple's privacy-first approach may face continued scrutiny from competition authorities worldwide.
The Italian decision also highlights the AGCM's expanding regulatory role. Recently empowered by Italy's 'Ferragni Law' to monitor social media influencers, the authority is demonstrating its willingness to tackle complex digital market issues.
Conclusion
The €98.6 million fine represents more than just a financial penalty—it's a statement about how European regulators view the responsibilities of dominant digital platforms. As privacy regulations like GDPR and competition rules like the DMA continue to evolve, companies like Apple will need to navigate increasingly complex regulatory landscapes where privacy protections must be balanced against fair competition requirements.
The outcome of Apple's appeal and similar cases across Europe will likely shape digital market regulations for years to come, determining how much control platform owners can exercise over their ecosystems while claiming privacy benefits for users.