Apple Slapped With $115 Million Fine By Italy's Competition Authority Over App Store Practices

The Italian Competition Authority (AGCM) has imposed a fine of 98.6 million euros ($115.53 million) on Apple Inc. (NASDAQ:AAPL) for alleged abuse of its dominant position in the mobile app market.

Italy Accuses Apple Of App Store Abuse

The AGCM accused Apple of violating European regulations with its App Store, where it holds an “absolute dominance” in dealing with third-party developers. The investigation into Apple was launched in May 2023, after the AGCM alleged that the company had penalized third-party app developers by applying a more restrictive privacy policy to them starting in April 2021.

The AGCM said Apple forced third-party developers to use its App Tracking Transparency (ATT) prompt to obtain ad-related consent, imposing unilateral and disproportionate terms that harmed partners and required duplicative consent requests without clear privacy justification.

The AGCM said the investigation was highly complex and conducted in coordination with the European Commission and other international antitrust and competition authorities.

Apple did not immediately respond to Benzinga‘s request for comment.

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Apple Faces Renewed Antitrust Pressure in EU

This is not the first time Apple has faced antitrust scrutiny in Europe. In July, the company appealed against a €500 million ($586 million) fine imposed by the European Union (EU) over alleged anti-competitive practices on its App Store. The EU charged Apple with restricting app developers from informing customers about alternative offers or marketplaces outside the App Store and steering customers towards in-app purchases.

In November, Apple confirmed that its Apple Ads and Apple Maps meet Digital Markets Act thresholds in the EU, triggering a decision on whether either service would receive the gatekeeper label, which would impose strict pro-competition obligations. This came after Apple and Meta Platforms Inc. (NASDAQ:META) were reportedly nearing a settlement with EU lawmakers on their respective antitrust cases. The two U.S. tech giants were in the final stages of negotiations with European regulators to amend various business practices, following a collective fine of €700 million ($772 million) in April for violating the EU's Digital Markets Act.

Benzinga's Edge Rankings place Apple in the 75th percentile for momentum and the 85th percentile for quality, reflecting its strong performance in both areas. Check the detailed report here. 

Price Action: On a year-to-date basis, Apple stock climbed 12.23% as per data from Benzinga Pro. On Friday, it rose 0.54% to close at $273.67.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.