Italy’s competition watchdog has fined Apple €98.6 million, roughly around Rs 1,041 crore, over the way it rolled out its App Tracking Transparency (ATT) system. The framework, launched with iOS 14.5 in April 2021, forces apps to ask users for permission before tracking their activity for ads. While the regulator agrees that protecting privacy is important, it says Apple’s approach went too far.
According to the authority, the system placed unfair pressure on app developers and advertisers, disrupted competition, and may have indirectly strengthened Apple’s own position in the digital advertising ecosystem.
Apple App Tracking Transparency Fine In Italy Explained
Italy’s Competition Authority, known as the AGCM, ruled that Apple abused its dominant position through how App Tracking Transparency was designed and enforced. Under ATT, users see a pop-up asking whether an app can track them across other apps and websites.
If users select “Ask App Not to Track,” the app loses access to Apple’s advertising identifier, which advertisers rely on to show personalised ads. The regulator made it clear that it does not oppose Apple’s aim of improving user privacy.
However, it said the method chosen was “disproportionate” and “excessively burdensome” for third-party developers. Many free apps depend on advertising revenue to survive. By restricting access to key ad tools, the authority believes Apple made it harder for these developers to compete and earn money.
According to the AGCM, Apple could have protected user privacy in ways that were less damaging to competition, instead of enforcing strict rules on others in the ecosystem.
App Tracking Transparency, GDPR Double Consent Issue
One of the biggest concerns raised by the regulator is what it calls the “double consent” problem. In the European Union, apps already need user consent under GDPR rules to process personal data. On Apple devices, this consent request is followed by a second ATT prompt.
The AGCM said this extra layer creates unnecessary friction for developers and advertisers. It increases the chance that users will refuse tracking, even when they have already agreed under GDPR rules. This, in turn, weakens ad-based business models and shifts the market balance.
The authority also pointed out that Apple’s own services do not show ATT prompts because Apple claims it does not track users across third-party apps and websites. While the rules technically apply to Apple too, the regulator suggested this setup could still give Apple an indirect advantage.
Apple has said it will appeal the decision. The company insists that App Tracking Transparency gives users clear control over their data. The fine adds to growing regulatory pressure in Europe, with Apple warning that continued action by national regulators and the European Commission could eventually push it to remove ATT from the EU entirely.
