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As editors at Squaredtech, we analyze tech regulations that shape markets. Italy’s antitrust authority fines Apple for App Store abuse in a major ruling. The decision highlights tensions between innovation and competition.
Italy’s competition authority, known as AGCM, imposes a 98.6 million euro fine on Apple Inc., Apple Distribution International Ltd., and Apple Italia S.r.l. The regulator targets Apple’s practices in the iOS app distribution market. Apple controls the App Store with absolute dominance, as AGCM states. Developers rely on this platform to reach iOS users.
Background on Italy’s Antitrust Action Against Apple
The fine equals about 115.53 million dollars at current exchange rates. AGCM finds that Apple violates Article 102 of the Treaty on the Functioning of the European Union. This article prohibits abuse of a dominant position. Apple allegedly restricts competition through its App Store policies. The authority announces the penalty on December 22, 2025, from Milan.
This action stems from a probe that started years earlier. In May 2023, AGCM opens an investigation into Apple’s App Tracking Transparency framework, or ATT. ATT requires apps to ask users for permission before tracking them across apps for ads. Regulators question if Apple applies stricter rules to third-party developers than to its own services. Apple benefits from better data access for its advertising, AGCM argues. Third-party developers face hurdles that limit their revenues.
Developers build apps for iPhones and iPads using iOS. They submit apps to the App Store for approval. Apple reviews each app and takes a 30% commission on sales or in-app purchases, often 15% for smaller developers. Users download apps only through this store on iOS devices. Apple blocks sideloading, where users install apps from outside sources. This setup gives Apple full control over distribution. AGCM sees this control as a dominant position that Apple exploits.
Prior cases set the stage for this fine. In 2021, AGCM fines Apple and Google 10 million euros each for unclear data practices during account creation. Apple fails to explain data use for commercial purposes right away. Users encounter vague terms when setting up Apple IDs or accessing the App Store. The regulator calls these practices aggressive. This pattern shows Italy’s focus on Apple’s data handling.
Europe ramps up scrutiny on Big Tech. The Digital Markets Act, or DMA, enforces fair competition since 2024. It labels Apple a gatekeeper and mandates app sideloading options. AGCM’s ruling aligns with DMA goals. Other countries probe similar issues. France fines Apple 150 million euros in March 2025 over ATT. Poland, Germany, and Romania investigate Apple’s ad tracking rules. These efforts pressure Apple to adjust policies.
Details of Apple’s App Store Abuse Allegations
AGCM centers the fine on Apple’s ATT policy design. Apple rolls out ATT in April 2021 with iOS 14.5. Apps must show a pop-up that asks users to allow tracking. Users often opt out, which cuts ad revenues for developers. Apple exempts its own apps from the same strict prompts. Apple’s services gather data more easily for personalized ads. This creates an uneven field, AGCM concludes.
Developers lose out because tracking data measures ad performance. Without it, they struggle to optimize campaigns. Ad networks depend on identifiers like Apple’s IDFA. ATT blocks cross-app tracking unless users consent. Apple positions ATT as a privacy win, but regulators view it as self-serving. Third-party ads suffer while Apple’s ad business grows. Developers report revenue drops of up to 40% post-ATT, based on industry studies.
The App Store reinforces this dominance. Apple dictates terms through guidelines. Developers cannot steer users to external payments. Apple enforces this with bans or rejections. Courts challenge these rules elsewhere. In the US, Epic Games sues Apple over commissions, leading to some concessions. In the EU, DMA forces Apple to allow third-party stores by 2024. Italy’s fine adds to this pressure. AGCM demands Apple end abusive practices and report changes.
Apple holds over 90% market share in premium smartphones in Europe. iOS users number in hundreds of millions. Developers face no real alternative to the App Store. Android allows sideloading and multiple stores, but iOS remains closed. This lockdown boosts Apple’s revenue, which topped 85 billion dollars from services in 2024. App Store fees contribute billions annually. Critics argue Apple prioritizes profits over openness.
Our team observed that such fines signal a shift. Regulators prioritize developer choice. Apple must balance privacy with fair access. ATT protects users from unwanted tracking, a valid goal. Yet, uneven application harms competition. Developers innovate less when revenues shrink. Users pay higher app prices as costs pass on. This fine quantifies the impact at nearly 100 million euros.
Broader Impacts and Future Outlook
The penalty affects Apple’s finances minimally. It reports quarterly revenues over 100 billion dollars. Still, fines accumulate. Apple pays over 2 billion euros in EU penalties since 2020. Investors watch for more actions. Apple’s stock trades stable post-announcement, but long-term risks grow.
Developers welcome the ruling. It pressures Apple to loosen rules. Smaller studios gain leverage in talks. The EU’s DMA rollout accelerates change. By March 2026, Apple opens iOS to rivals in Europe. Italy leads with this fine, setting precedent. Other nations may follow with higher penalties.
Consumers benefit indirectly. More competition lowers prices. Better apps emerge from open markets. Privacy improves if rules apply equally. Apple responds by refining ATT. It claims equal rules for all developers. The company cooperates with regulators, as stated in past probes. No comment follows this fine yet.
Squaredtech analyzes these developments for clients. Tech firms adapt to regulations now. Apple innovates hardware, but software policies draw fire. The App Store evolves from a 2008 launch to a trillion-dollar ecosystem. Regulators reshape it for fairness.
Global ripple effects emerge. US antitrust suits target Apple too. The DOJ challenges App Store monopoly. DOJ seeks structural changes. Europe influences worldwide standards. China approves more foreign apps under pressure. Developers worldwide push for change.
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