Did a privacy safeguard quietly tilt the competitive playing field? That’s the conclusion Italy’s antitrust authority reached when it fined Apple €98.6 million (roughly $115–116 million) for what regulators call an abuse of dominance tied to the company’s App Tracking Transparency (ATT) system.
Apple introduced ATT in 2021 as a privacy-first feature that forces apps to request permission before tracking users across apps and websites. Consumers and privacy advocates applauded the move. But Milan’s competition watchdog says ATT had an unintended — or, the regulator argues, calculated — consequence: third‑party app developers were forced to ask users for consent twice, a “double consent” requirement that the authority found “disproportionate” and “extremely burdensome.”
What the authority found
According to the Italian Competition Authority, the extra consent screen made it harder for ad-funded apps to earn revenue. As users increasingly declined personalized tracking requests, many smaller developers saw ad income tumble. Meanwhile, Apple’s App Store services revenue continued to rise. The regulator flagged two possible advantages for Apple: higher commissions paid by developers and growth in Apple’s own advertising business, which the watchdog noted isn’t subject to the same constraints as third‑party ad tech.
Regulators described the continuing requirement for a separate consent screen as harmful to developers, advertisers and ad intermediation platforms — and not strictly necessary to deliver the privacy protections Apple says ATT offers. The authority says the conduct “produced effects” on market competition, lowering developers’ revenues and increasing costs for advertisers.
Apple’s response — and the bigger context
Unsurprisingly, Apple said it strongly disagrees and will appeal. In its statement the company doubled down on the privacy argument: ATT, Apple says, gives users a simple control over cross‑app tracking and applies equally to all developers, including Apple itself. Apple framed the antitrust ruling as favoring ad‑tech companies and data brokers that want broader access to personal data.
This is not the first time European regulators have pushed back. France’s antitrust watchdog fined Apple earlier in the year for a similar issue, and the Italian decision adds momentum to a wider regulatory conversation about how privacy rules interact with competition law. The move comes amid other EU pressures on Apple’s ecosystem — for example, Apple recently announced it will disable iPhone–Apple Watch Wi‑Fi sync in the EU as it adjusts to regulatory deadlines — a signal that the company is navigating overlapping privacy, competition and market‑opening rules.Apple to disable iPhone–Apple Watch Wi‑Fi sync in EU as DMA deadline looms
Why developers care
For ad-supported apps, the practical result has been fewer opt‑ins and less targeted advertising — which translates directly into revenue declines. Small teams that build and test apps on a MacBook often rely on ad income to stay afloat; when personalization collapses, subscription or paid upfront models aren’t always viable. That dynamic is one reason small developers and industry groups have argued ATT can advantage Apple and its preferred monetization paths. If you work on iOS apps, the policy environment around tracking, consent screens and app distribution rules will stay very relevant in 2026 and beyond — alongside feature changes Apple rolls into iOS, like the recent updates to Apple Podcasts in iOS 26.2 that show how the company iterates on platform services.iOS 26.2 changes to Apple Podcasts
What this might mean going forward
Legal appeals are likely. Apple will take the case up the Italian court ladder, and the arguments could echo elsewhere in Europe and beyond. Regulators will have to grapple with striking a balance: ensuring robust user privacy while avoiding remedies that themselves distort competition.
A few things to watch:- Whether courts accept the authority’s view that a separate consent screen amounted to an abusive practice rather than a privacy safeguard.
- If regulators push for technical or UI changes that let developers obtain lawful consent in a single step without weakening user protections.
- Whether other jurisdictions use Italy’s decision as a blueprint for similar enforcement.
There’s no neat resolution yet. The fine is significant, but the larger contest — over who gets to set the rules for data, ads and app distribution on mobile platforms — is still playing out in courtrooms and rulemaking halls. For Apple, developers and advertisers, the next moves will matter as much as this one.
If you build iOS apps or follow platform regulation, expect more legal sparring and policy shifts. And if you happen to be testing on a MacBook, keep an eye on both privacy UX and revenue models: one influences the other in ways regulators are finally treating as inseparable.