Apple Fined: Privacy Battle 💥💸 User Control?

Apple Hit with Massive Fine Over App Store Privacy Practices
Apple has been slapped with a staggering €93 million ($115.4 million) fine by the Italian Competition Authority (AGCM) due to its controversial App Store practices. This significant penalty stems from an investigation launched in May 2023 that revealed Apple’s misuse of its dominance within the App Store, highlighting long-standing concerns about its regulatory approach.

Privacy Regulations Used as a Weapon Against Developers
The investigation, initiated on May 2, 2023, uncovered Apple’s deliberate imposition of restrictive privacy regulations on developers beginning in April 2021. The AGCM asserted that Apple forced developers to utilize the App Tracking Transparency (ATT) prompt for user consent, effectively blocking them from opting out – a key factor in the investigation’s findings.

Double Consent Demanded: A GDPR Violation
Critically, the AGCM determined that the ATT prompt alone was insufficient to meet the requirements of the General Data Protection Regulation (GDPR). Consequently, developers were required to provide a second consent prompt, significantly increasing the number of consents users had to grant. This dual consent approach was deemed a fundamental violation of GDPR standards.

Revenue Loss for Developers and Advertisers
The investigation further revealed that Apple’s actions directly impacted competition and revenue streams. Point 8 of the AGCM’s executive summary highlighted how the imposition of the ATT prompt resulted in a demonstrable decrease in revenues for both developers and advertising platforms.

Increased Costs for Advertisers Due to Reduced Tracking Data
The reduction in consent stemming from the ATT prompted users to opt-out of tracking, leading to a decline in tracking data. This, in turn, amplified the costs for advertisers, who rely on this data for targeted advertising campaigns. The AGCM viewed this manipulation of consent as a deliberate strategy to diminish competition from third-party developers.