Italy Slaps Apple With $116 Million Fine Over Double-Consent Requirement On Apps
Italy's version of the Federal Trade Commission fined Apple, Inc. nearly $116 million over what it says were overly-restrictive privacy rules that required third-party app developers to obtain user consent for data collection and tracking when it comes to delivering targeted advertising.
Italy's watchdog authority - the AGCM, said on Monday that Apple and its subsidiaries abused its "super-dominant" market position by requiring said consumer protections.
The fine stems from a May 2023 joint investigation by the AGCM, European Commission, Italian Data Protection Authority (GPDP in Italian), and other national competition authorities into the restrictions from Apple's App Tracking Transparency (ATT) framework.
AGCM claims that in April 2021, Apple began requiring app developers to obtain user consent in addition to previously existing consent requirements that had been granted through Apple's own consent prompt. This double-consent requirement violates article 102 of the Treaty on the Functioning of the European Union.
"Third-party app developers are required to obtain specific consent for the collection and linking of data for advertising purposes through Apple’s ATT prompt," said the AGCM. "However, such prompt does not meet privacy legislation requirements, forcing developers to double the consent request for the same purpose."
As the Epoch Times notes further, in an executive summary of the investigation’s findings, the Italian Competition Authority of Rome lauded Apple’s efforts to safeguard user privacy within its operating system.
However, the GPDP said, making developers obtain double user consent was “excessive” and “burdensome” and ultimately led to a reduction of opt-in rates by users for data tracking on third-party apps. That action, in turn, hampered app developers’ ability to compete with Apple and deliver targeted advertising, which resulted in higher commissions paid to Apple by developers, as well as additional revenue through a higher volume of targeted ads.
“Given that user data are a key input for personalized online advertising—since higher-quality and larger volumes of data improve the ability to identify users who may be genuinely interested in the advertised product, service or app—the restrictions imposed by the ATT policy on the collection, linking and use of such data are capable of harming developers whose business model relies on the sale of advertising space, as well as advertisers and advertising intermediation platforms,” the AGCM wrote.
The Epoch Times requested comment from Apple regarding the investigation’s finding and fine by the AGCM, but did not receive a response by publication time.
Earlier this year, Apple was fined 500 million euros ($588 million) by the European Union for breaching the Digital Markets Act (DMA) and not informing customers of potential alternatives outside of its App Store. Meta was also fined 200 million euros ($235 million) for breaching the DMA by failing to provide customers with options on how much of their data is used. Apple and Meta are appealing those fines, which were levied in April.
