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Italian Competition Authority Fines Apple $115M for Abusing Dominant Position

earthnail

Surprised by the negative comments here. Usually HN univocally complains about Apple‘s dominant App Store. Now a government fines them for it and some people are upset?

Someone1234

It is a nationalistic thing. When foreign governments fine "American" companies, they get all up in arms, while constantly asking the US Government to provide better consumer protections and promote competition.

This position commonly ignores that these fines are against these companies position within the market for which they're fined. Meaning that the EU will look at the EU profits and fine relative to those, so they aren't fining the "American" side/profits of the company but rather their "EU" (or Italian in this case) balance sheet.

amarcheschi

This whole procedure started after Meta (that meta) reported apple to the authority, it's not even an investigation that was started by the authority of its own volition

StopDisinfo910

The EU moved to fining on the basis of global revenues a long time ago to avoid companies using accounting to hide local revenues and avoid fines.

Then again, it could be seen as a tit for tat move regarding how the US applied its laws extraterritorialy using the dollar as a medium so it's bit harsh to complain about the EU when the US started the whole thing.

dns_snek

You shouldn't be surprised. Almost every single story involving the EU and Apple that I've seen over the past few years was full of low effort responses and generic rants about the EU by people who clearly haven't read past the title, especially when it comes to fines.

Take your pick: "EU is fining us to finance itself", "EU can't innovate", "I can't believe that EU is fining Apple for [gross misunderstanding of the situation]"

petcat

I think people would sympathize more if it was something like "Apple makes choosing a different default browser or email client unnecessarily cumbersome" --

instead of "Apple makes you double-opt-in to sharing your private data with even more advertisers"

dns_snek

But that's not the story here. I hate ads as much as anyone, but this action is a matter of market competition, not privacy. They're completely different fights and intelligent people ought to be able to distinguish between the two. Anti-competitive behavior by Google, Apple, Meta, etc. is what got us into this mess with tracking and privacy violations in the first place.

wrxd

I don’t think it’s surprising. The ideal setup for many people here is an OS that gives them control over what they run and over their data.

An App Store that restrict us from running the application we want is bad. An App Store that prevents applications from tracking us is good. The former restricts our freedom, the latter restricts the freedom of developers who want to take advantage of our data.

Obscurity4340

It wasnt until recently that we could even have emulators to play old video games we grew up with, instead of having to buy "clones" one by one for $5/piece. The only thing that was protecting was Apple's profits

embedding-shape

It's almost like the stories on HN always attract more nay-sayers/detractors/negative nancies than positive ones, so if you just go by "general vibe of the comment section by submission theme", it'll always look like HN has split personality disorder, while in reality HN is composed of a wide range of diverse individuals :)

runako

This looks like it's targeted at the relationship between Apple and Italian developers. I guess this means Apple could also comply by kicking Italian developers out of the iOS developer program?

esperent

Unlikely because services in the EU have to be offered without barriers to everyone across all member states.

joe_mamba

Which laws say that exact thing?

Because I live in an EU country that had and has foreign products and services, usually US originals, not officially available in my home EU country like for example Xbox GamePass for console. Was same with Nextflix till a few years ago. Same with AMEX cards.

So NO, you can definitely provide your services only to specific EU member states if that's what you wish, they can't force you to sell in all countries.

null

[deleted]

rdtsc

> privacy rules imposed by Apple for iOS devices, as of April 2021, on third-party developers of apps distributed through the App Store. In particular, third-party app developers are required to obtain specific consent for the collection and linking of data for advertising purposes through Apple’s ATT prompt

Wait, so they are punishing Apple because Apple makes it harder to spy on users.

What happens if Apple just exits the Italian market? They can create their own Apple competitor, I guess.

piva00

No, they are punishing because the ATT pop-up is not enough to comply with privacy rules, requiring 3rd party apps to have a secondary pop-up to be compliant (which Apple's own apps wouldn't need since they don't use ATT).

So it's more that Apple's ATT is not compliant with stricter privacy rules, not the opposite...

concinds

The "stricter" privacy rules of "Accept all" banners that send your data to 1000+ companies? Or "Accept all", but to Refuse you must tap a small grey link and manually uncheck dozens of boxes? Or worse, banners that force you to choose between accepting all tracking or paying a monthly subscription, blatantly illegal in the EU but ubiquitous in Italy even among large companies and news sites?

Meanwhile ATT blocks access to IDFA (instead of making it a pinky promise), and if apps were honest and were denied ATT it should disable other tracking too. The user has already indicated lack of consent.

piva00

> The "stricter" privacy rules of "Accept all" banners that send your data to 1000+ companies? Or "Accept all", but to Refuse you must tap a small grey link and manually uncheck dozens of boxes? Or worse, banners that force you to choose between accepting all tracking or paying a monthly subscription, blatantly illegal in the EU but ubiquitous in Italy even among large companies and news sites?

I don't know, I just stated what is in the decision: Apple makes 3rd party developers have to go through a process their own apps do not have to, hence creating an imbalance in competition since they are also the owners and controllers of the distribution channel.

The blatantly illegal pop-ups also annoy me a lot, it's clear it's not even malicious compliance but a targeted attack against the regulations to make it seem the law is requiring them to make it as annoying as possible. It seems to work since you got incensed by it.

amarcheschi

As far as I can understand, the fine is for having a prompt for 3rd party apps, but not apple's own apps. Then I'm not sure because even to me, the wording used by the authority is not entirely clear, but the issue would lie in a different treatment reserved for 3rd parties compared to 1st party apps

dns_snek

Yes, precisely, take a look at the summary document [1] at the bottom of the article.

> xii. As a matter of fact, revenues from App Store services increased, in terms of higher commissions collected from developers through the platform; likewise, Apple’s advertising division, which is not subject to the same stringent rules, ultimately benefited from increased revenues and higher volumes of intermediated ads

> xiii. Therefore, considering that Apple holds an absolute dominant position in the market for the supply to developers of platforms for the online distribution of apps to users of the iOS operating system, the Authority established that Apple’s conduct amounts to an exploitative abuse, in breach of Article 102 TFEU, that started in April 2021 and is still ongoing.

[1] https://en.agcm.it/dotcmsdoc/pressrelease/A561_SUMMARY.pdf

concinds

ATT isn't about a vendor tracking you across their apps (Facebook can still log you into all their apps at once). It's about using data collected by third-parties or sending data to third party trackers, which Apple doesn't do for their own ads.

amarcheschi

Ok, that makes it clearer

embedding-shape

> What happens if Apple just exits the Italian market? They can create their own Apple competitor, I guess.

My guess is that if they want to do that, they'd also need to leave the European market as a whole, as many countries share similar laws and regulations, besides the ones that applied across the entire European Union. And since Europe seems to represent ~25% total revenue in 2025, that feels like a highly unlikely choice for them to do, considering they're a public company and have obligations to the shareholders.

epolanski

It's about 3rd party vs apple's own.

p-e-w

> What happens if Apple just exits the Italian market?

They can’t.

If they did, the company (and thus shareholders) would lose money. Shareholders would vote out the board, and the new board would appoint a CEO who would promptly re-enter the Italian market.

This is why corporations get slapped around by regulators everywhere, even though on the surface, the regulators need the company far more than the other way round.

dinkblam

no year goes by without Italy imposing random >100m€ fines for 2-3 american tech companies. whenever they need money, they just hit another one without care whether actual laws were violated. the amount they take has no correlation to what has been blamed, only to how much the companies can afford to pay without threatening to leave the country.

the 'Guardia di Finanza' has a long standing tradition of trying to extort money without regards to actual laws. its not long ago that they told all companies 'if you pay X% more than your tax report says you own then we won't destroy your company'. more recently they went after the Agnelli family trying to extort money without having an actual case.

its not the rule of law, its simply Might makes Right or modern robber knights...

embedding-shape

> no year goes by without Italy imposing random >100m€ fines for 2-3 american tech companies. whenever they need money

Since you apparently know, how large would a 100M EUR injection into the Italian budget for 2026 actually be, relatively to the other things?

You're saying they're doing this because they need money, but wouldn't changing the tax rates be more effective at this? 100M feels like a piss in the ocean, when you talk about a country's budget, but since you seem to imply Italy is doing this survive, would be nice to know what ratio this fine represents of their budget, which I'm guessing you have in front of you already?

franch

Italy's unconsolidated budget for 2025 is projected to be around 700 billion euros in revenue and 900 billion in expenditures:

https://www.rgs.mef.gov.it/VERSIONE-I/attivita_istituzionali...

So yeah, whoever talks about these fines as a strategy for fixing the budget knows nothing about the actual budget of a G7 state, these fines are completely immaterial to Italian fiscal policy.

For perspective, that's roughly equivalent to someone with a €50,000 annual income finding €7 on the street and someone claiming they're doing it "to survive."

next_xibalba

This, I think, is the real answer why this is happening. The motivation behind these huge fines on large U.S. tech companies by EU countries is actually "we need revenue", not "we must protect our users". I would expect this to become another source of strain between the EU and the US as the EU economy continues to atrophy. Especially so if the U.S. economy weakens, too.

HotGarbage

You do not, under any circumstances, have to defend a $4 trillion company.

pb7

This company has provided immeasurably more for me than Italy has in my lifetime.

threemux

It's the EU way. The only area where they produce world-leading innovation is regulatory regimes, so gotta use it to hit up American tech companies like an ATM.

prettygood

They can always chose not to sell their products and services in the EU if they don't want to comply with the laws here.

razakel

Just an idea - how about not breaking the law?

threemux

Oh please. "The law" is a Kafkaesque patchwork that delegates authority to local officials and has enough complexity and wiggle room to make anything possible. We're not talking about a speed limit sign here. Show me the [company], I'll show you the crime.

I've been assured by people in this thread and others that, for example, if you "don't spy on users", you don't need cookie banners, and yet official EU sites have them.

primer42

Apple makes, what, $1 billion (with a B) in profit every day.

So this is nothing to them.

groundzeros2015

What about profit in Italy?

Relative amounts don’t make it right or wrong.

concinds

> The Authority found the App Tracking Transparency (“ATT”) policy to restrict competition. [...]

> In particular, third-party app developers are required to obtain specific consent for the collection and linking of data for advertising purposes through Apple’s ATT prompt. However, such prompt does not meet privacy legislation requirements, forcing developers to double the consent request for the same purpose.

> The Authority established that the terms of the ATT policy are imposed unilaterally and harm the interests of Apple’s commercial partners. The terms were also found to be disproportionate to the achievement of the company’s stated data protection objectives.

They must think we're fucking stupid.

petcat

EU privacy regulations and the GDPR are a complete farce. You'll notice that the EU's own government websites are littered with cookie banners. They want the data just as bad as everybody else.

The goal was not in any way to protect privacy, but rather to extract rent from American tech companies.

hnbad

> They want the data just as bad as everybody else.

Sure. Let's look at the main site: https://european-union.europa.eu/index_en

Big cookie banner. Wait. What's that. It's not a modal? And a big "Accept only essential cookies" button with the same visual weight as the "Accept all cookies" button? Surely everybody does it this way because it's literally what EU law requires - surely nobody would try to trick people into clicking "accept all" by hiding the alternative behind multiple layers of opaque options and checkboxes.

So let's look at what data they are harvesting: https://european-union.europa.eu/cookies_en

Technical cookies... functional cookies... boring - most of these are just for handling logins and preferences. Ooh, analytics! But what's Europa Analytics? Let's check: https://european-union.europa.eu/europa-analytics_en

Oh, they are not only opt-in, they even respect DNT headers. And they're masking the IP addresses before processing them further. Damn, they must really want that data just as bad as "everybody else".

sonuhia

money laundering? a bribe? someone ink and track every single one of those dollars!

mainde

Don't you find it excessive to imply the above regarding a G7 country?

wendgeabos

The government is everywhere prone to becoming the mafia.

fn348x2

On the Euro, Maastricht Treaty circa. ratified in 1992.

Is certainly a leverage in Apple’s third-party research.

slowmovintarget

Apple's consent requirement isn't good enough for legal consent so third-parties have to ask twice, which "harms advertisers" trying to get at that juicy personal data.

troupo

Of all issues they chose "poor advertisers can't get their hands on user data"

lioeters

OK now slap the wrists of Alphabet and Meta.

Lapel2742

> OK now slap the wrists of Alphabet and Meta.

Google is probably next (Antitrust case(s)). AFAIK the EU is currently probing a case.

And before the Nationalists get mad again: If I sell in the US I'm naturally obliged to follow US rules and regulations. I wouldn't even think twice about this. The same is true in other markets. So for the Single Market: If you play on European turf, you play by European rules.