Italy’s competition watchdog has ordered Apple to pay a massive fine of 98.6 million euros, which equals about $115 million, according to Reuters. The penalty targets Apple and two of its business divisions for breaking competition rules in how it runs the mobile app marketplace. Reuters notes that regulators believe the tech giant misused its powerful position when dealing with companies that create apps for its platform. The investigation found that Apple maintains complete control over the App Store, where it works with outside app creators. This level of control raised serious concerns about fair business practices in the digital marketplace.
Privacy rules create double work for app makers
The Wall Street Journal reports that the fine specifically targets Apple’s app-tracking transparency system, which the company introduced to protect user privacy. Italian authorities found problems with how this system actually works in practice. According to the Wall Street Journal, the tracking policy forces app developers to ask users for permission twice when they want to collect information for advertising purposes.
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The first request comes through Apple‘s own special prompt, and then developers must create their own separate request. This double-asking process makes it harder for app creators to gather the data they need to show personalized advertisements. Officials stated that this situation hurts Apple’s business partners and gives the company an unfair edge in the market.
Investigation reveals lost money for developers
Tech Republic explains that the investigation started in May 2023 and examined how Apple’s privacy requirements affected app creators’ income. The authority discovered that when users face two permission requests instead of one, they become more likely to say no to tracking. Tech Republic points out that Apple required all outside developers to use this system while keeping its own apps separate from the same rules. The result was lower advertising revenue for third-party developers because they collected less user data. Apple strongly disagreed with these findings and plans to challenge the decision through appeals, stating that its privacy features protect users effectively.