Apple’s strict iPhone rules just cost it millions again

Apple is back in hot water in Europe, and once again, it is all about how locked-down its ecosystem is.

Italy slaps Apple with a big fine

Italy’s competition authority announced that it has fined Apple 98 million euros (around $115 million when directly converted) for allegedly abusing its power in the mobile app market.

Basically, the regulators say Apple’s App Store gives it absolute dominance because it is the only official place to get apps on iPhones and iPads. And with that kind of control, Apple can set rules that end up hurting developers.

The investigation started back in May 2023, focusing on Apple’s App Tracking Transparency (ATT) feature, which requires apps to get user consent before tracking their activity for ads.

And according to Italy’s watchdog, Apple made these rules stricter than necessary, putting third-party developers at a disadvantage while claiming it is all about privacy. In other words, the authorities think Apple is using privacy rules to maintain control and protect its own business interests.

Actually, Italy isn’t the only one going after Apple. Earlier this year, France fined Apple 150 million euros over ATT as well, and several other EU countries are running similar investigations. Europe is clearly paying close attention to how Apple manages its App Store.

Apple’s long history of EU headaches

As I just mentioned above, Apple has been facing scrutiny in the EU for years. The EU wants big tech to open up more, let developers have options, and make things more transparent. Apple has made some concessions – for example, allowing third-party app stores in the EU thanks to the Digital Markets Act – but it has mostly resisted big changes that would reduce its control.

Developers in the US have complained too, and some of that pressure led to changes after the Epic Games lawsuit over Fortnite. Apple now lets US developers link to external payment systems. It shows that when regulators or developers push hard enough, Apple does adjust – but only when it really has to.

Europe keeps a close eye on big tech

The EU has been tough on tech giants in the past few years. For example, Google has been hit with multiple multi-billion euro fines over the years, and former competition chief Margrethe Vestager wasn’t shy about enforcing the rules. Apple is under that same microscope, with ATT and App Store policies being watched closely.

I think regulation is important to keep things fair, but it can also have side effects. Sometimes users feel the impact, like when Apple Intelligence rolled out later in Europe, leaving iPhone 16 users waiting. So while regulators push for fairness and competition, too much restriction can slow down features for everyday users.