Apple Hit With €98.6 Million Penalty Over App Store Privacy Framework Abuse

Italy’s antitrust regulator has imposed a substantial fine on Apple and its subsidiaries, accusing the tech giant of exploiting its commanding position in mobile app distribution. The €98.6 million penalty centers on what Italian authorities characterize as anticompetitive conduct embedded within Apple’s App Store operations, particularly the company’s handling of privacy compliance measures.

The Core Issue: Privacy Rules as Market Control

The investigation, initiated in May 2023, specifically examined the App Tracking Transparency (ATT) framework that Apple rolled out in April 2021. While the company presented ATT as a user privacy enhancement, Italian regulators argue that Apple weaponized these privacy protections to restrict developer access and maintain its ecosystem dominance.

Under the ATT regime, Apple mandated that third-party developers obtain explicit user consent through an on-screen prompt before tracking user data across applications. However, the Italian authority determined these requirements were disproportionately onerous and served purposes beyond legitimate privacy safeguards. Developers reportedly faced requirements to request duplicate consent for identical purposes, creating unnecessary friction in the user experience while simultaneously disadvantaging competing services.

The Abuse Quote: Unequal Playing Field

The regulator’s findings highlight what it views as systematic abuse. Apple established privacy rules unilaterally and enforced them with little flexibility, while the company’s own services operated under different standards. Given Apple’s near-monopolistic control over app distribution, developers lacked meaningful negotiating power—they either complied or lost market access entirely. This dynamic created an ecosystem where Apple’s arbitrary rules functioned as de facto entry barriers for competitors.

The investigation operated within a broader international enforcement framework, coordinated with the European Commission and other antitrust authorities globally, suggesting this reflects a coordinated regulatory push against Big Tech’s unchecked platform power.

Apple’s Defense and Market Reaction

Apple contests the ruling, asserting that the ATT framework applies uniformly across all developers, including Apple’s own services. The company maintains that the privacy controls genuinely serve user interests by preventing hidden cross-app tracking. Apple confirmed it plans to appeal the decision and will continue advocating for its privacy standards.

In market terms, AAPL stock reflected modest pressure, trading at $270.86, representing a 1.02% decline on the Nasdaq. The fine, while substantial in nominal terms, represents less than 0.2% of Apple’s quarterly revenue, suggesting limited direct financial impact. However, the regulatory precedent may carry greater significance for how the company structures future App Store policies across international markets.

The case underscores intensifying scrutiny of how technology platforms leverage privacy frameworks—ostensibly designed to protect consumers—as mechanisms to consolidate market control and disadvantage rivals.