Apple Fined €98.6 Million for Abuse of Dominant Position
The Italian Antitrust authority has imposed a significant fine of €98,635,416.67 on Apple Inc., Apple Distribution International Ltd, and Apple Italia Srl for violating Article 102 TFEU. This decision comes after an in-depth investigation, conducted in coordination with the European Commission and other national competition authorities, which found that Apple had abused its dominant position in the market for online distribution of apps for iOS users.
Abuse of Dominant Position through App Store
According to the Antitrust authority, Apple holds an absolute dominant position in the market through its App Store, which is the sole platform for distributing apps to iOS users. This dominance has allowed Apple to impose restrictive policies on third-party developers, including the App Tracking Transparency (ATT) policy. Introduced in April 2021, the ATT policy requires developers to obtain specific consent for collecting and connecting data for advertising purposes through a screen imposed by Apple, known as the ATT prompt.
However, the Antitrust authority found that this policy is not sufficient to meet the requirements established by privacy legislation, forcing developers to duplicate the request for consent for the same purpose. This restrictiveness has a significant impact on the competitive landscape, limiting the ability of third-party developers to operate effectively in the market.
Investigation and Findings
The investigation, which involved coordination with the European Commission, national competition authorities, and the Guarantor for the Protection of Personal Data, aimed to assess the competitive impact of Apple’s ATT policy. The findings of the investigation revealed that Apple’s policy had indeed restricted competition in the market, thereby infringing Article 102 TFEU.
The fine imposed on Apple serves as a reminder of the importance of ensuring fair competition in the digital market. As a dominant player, Apple must comply with antitrust regulations and respect the rights of third-party developers. The decision is a significant step towards promoting a more competitive and innovative app ecosystem.
For more information on the Antitrust authority’s decision, please visit Here