Apple hit with $116 mn fine over App Tracking Transparency rules: Check details

Italy’s Competition Authority (AGCM) has fined Apple €98.6 million (about $116 million) over its App Tracking Transparency (ATT) feature, saying the rules unfairly hurt app developers and advertisers. Apple launched App Tracking Transparency with iOS 14.5 in April 2021. Under this system, apps must ask users for permission before tracking their activity across other apps and websites for targeted advertising. If a user taps the “Ask App Not to Track” option, the app cannot access the device’s advertising identifier.

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The AGCM said Apple’s ATT rules are “disproportionate” and “harmful” to developers and advertisers. The regulator stressed that Apple abused its dominant position in the EU market by imposing rules that go beyond what is necessary to protect user privacy.

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Importantly, the authority said it does not oppose Apple’s goal of improving privacy and security. However, it described the ATT system as “excessively burdensome for developers,” reports MacRumors. One key issue highlighted was what the AGCM called a “double consent” problem. In the EU, iPhone and iPad users often see both Apple’s ATT prompt and separate consent requests required under GDPR rules inside apps. 

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“Apple could have achieved the same level of privacy protection for its users through means less restrictive of competition,” the AGCM said. “This would have prevented the unilateral imposition of additional burdens on third-party developers, thereby avoiding the above-mentioned double consent requests for advertising purposes.”

The regulator also noted that the ATT rules could bring financial benefits to Apple.

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Earlier this year, Apple reportedly warned that growing regulatory pressure in countries such as Italy, France, Germany, and Poland, as well as from the European Commission, could eventually force it to stop offering App Tracking Transparency in the EU.

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Ayushi Jain

Ayushi works as Chief Copy Editor at Digit, covering everything from breaking tech news to in-depth smartphone reviews. Prior to Digit, she was part of the editorial team at IANS. View Full Profile