Apple Fined $116M in Italy Over iPhone Privacy Feature
In a landmark decision that could ripple across the tech industry, Apple has been slapped with a €98.6 million ($116 million) fine by Italy’s Competition Authority (AGCM) over its App Tracking Transparency (ATT) feature. The penalty, announced December 22, 2025, centers not on privacy itself—but on how Apple’s implementation may be stifling competition in the European digital ad market. Users searching “Why was Apple fined in Italy?” or “What’s the issue with iPhone tracking prompts?” now have a clear answer: regulators argue Apple’s privacy rules unfairly burden third-party developers while potentially boosting its own ad business.
Italy’s Regulators Call ATT “Disproportionate”
The AGCM doesn’t oppose stronger user privacy—in fact, it explicitly praises Apple’s intent. But it argues that the way App Tracking Transparency is enforced goes too far. Since iOS 14.5 launched in April 2021, all apps on iPhone and iPad must ask users for explicit permission before tracking their activity across other apps and websites. If users tap “Ask App Not to Track,” the app loses access to the device’s advertising identifier, effectively blinding it from personalized ad targeting. While privacy advocates hailed this as a win, European regulators now see it as a tool of market control.
The “Double Consent” Problem in the EU
One of the AGCM’s core complaints is what it calls the “double consent” burden. In the European Union, apps must already comply with the General Data Protection Regulation (GDPR), which requires its own set of user consent prompts for data collection and advertising. On Apple devices, developers must now present both GDPR notices and Apple’s ATT prompt—creating a confusing, repetitive experience that often leads users to reject tracking entirely. The AGCM argues this dual-layer system disproportionately harms smaller developers and ad-dependent businesses that rely on targeted advertising to survive.
Is Apple Playing Both Sides?
Perhaps most damning is the regulator’s suggestion that Apple benefits financially from its own rule. While Apple claims ATT applies equally to its apps, internal inconsistencies raise eyebrows. Apple’s own apps—like Apple News and Stocks—don’t show the ATT prompt, even though they serve ads. Regulators note that Apple’s ad business has grown significantly since ATT’s rollout, suggesting the company may be leveraging privacy as a smokescreen for anti-competitive advantage. “Apple could have achieved the same privacy goals with less restrictive measures,” the AGCM stated, accusing the tech giant of unilateral rule-setting.
A Privacy Shield or a Competitive Weapon?
This case cuts to the heart of a growing global debate: when does privacy become a barrier to fair competition? Apple has long marketed privacy as a core product differentiator—“Privacy. That’s iPhone” runs the famous ad campaign. Yet critics, including Meta and other ad-tech firms, have long argued that Apple’s policies are selectively applied to weaken rivals while strengthening its own ecosystem. Italy’s fine is the first major regulatory action to formally echo that concern, potentially setting a precedent for other EU nations.
Apple’s Defense: Privacy First, Always
Apple has pushed back hard against the ruling. In a statement, the company reiterated that ATT exists solely to give users control over their data. “We believe privacy is a fundamental human right,” a spokesperson said. “The App Tracking Transparency feature applies uniformly to all developers—including Apple—and has been widely supported by users and privacy advocates worldwide.” Apple also noted that developers are free to use alternative, non-tracking-based monetization strategies, like subscriptions or contextual ads.
What This Means for Developers
For the millions of app makers relying on targeted ads, the AGCM’s decision offers a rare glimmer of hope. The fine doesn’t roll back ATT, but it signals growing regulatory scrutiny of Apple’s App Store policies. Developers in Europe may soon see revised consent flows that merge GDPR and ATT prompts into a single, clearer interface—reducing user fatigue and potentially increasing opt-in rates. Still, any real change would require Apple to cooperate with EU authorities, something it has historically resisted.
Broader Implications for Big Tech
Italy’s move could embolden other regulators. The European Commission is already investigating Apple under the Digital Markets Act (DMA), and this fine may feed into that broader probe. If Apple is forced to modify ATT across the EU, it could weaken one of its most powerful marketing tools—and open the door for tighter oversight of how tech giants design “privacy” features. Critics warn that without oversight, companies could use ethical-sounding policies to mask self-serving business tactics.
User Reactions Remain Split
Public opinion is divided. Many iPhone users celebrate ATT as a rare win against invasive data collection. “I finally feel in control,” said Sofia Ricci, a Milan-based graphic designer. But others, especially those using free apps, have noticed a drop in app quality or an uptick in paywalls. “My favorite weather app went premium overnight,” said Luca Moretti, a teacher in Rome. “Privacy sounds great until you lose access to useful free tools.”
What Happens Next?
Apple has 60 days to appeal the fine or comply with AGCM’s recommendations. Legal experts expect a drawn-out battle, possibly reaching the Court of Justice of the European Union. Meanwhile, the case puts pressure on Apple to prove that its privacy features aren’t just ethical—but also fair. As 2026 approaches, this ruling could become a turning point in how global regulators balance user rights against market fairness.
A Defining Moment for Digital Ethics
At its core, this isn’t just about a $116 million penalty—it’s about who gets to define the rules of the digital world. Apple has positioned itself as the guardian of user privacy, but Italy’s regulators are asking a tougher question: Can a company be both referee and player? As governments worldwide sharpen their antitrust tools, Apple’s ATT feature may become the test case for whether “privacy by design” can coexist with open competition.
For now, iPhone users in Europe will keep seeing those tracking prompts. But behind the scenes, a high-stakes battle over control, competition, and consent is heating up. Whether Apple’s privacy stance survives regulatory scrutiny—or gets reshaped by it—could redefine not just how apps track us, but who really holds the power in the mobile ecosystem.
