Italy claims that Apple and Google are together profiting from the use of user data, without telling those users what the purposes are. Its regulator has now fined the companies 10 million euros ($11.2 million).
Days after it fined Apple and Amazon a total of $230 million over alleged price fixing, Italy has imposed a new fine jointly on Apple and Google. This new move by the country's Competition and Market Authority, claims that the companies violate the Consumer Code.
"The Antitrust Authority has ascertained for each company two violations of the Consumer Code," said the regulator in a statement (in translation), "one for informative deficiencies and another for aggressive practises related to the acquisition and use of consumer data for commercial purposes."
"Google bases its economic activity on offering a wide range of products and services connected to the Internet... also based on user profiling and carried out thanks to their data," it continues. "Apple collects, profiles and uses user data for commercial purposes through the use of its devices and services."
"Therefore, even without proceeding with any transfer of data to third parties," it concludes, "Apple directly exploits its economic value through a promotional activity to increase the sale of its products and/or those of third parties through its App Store, iTunes Store and Apple Books commercial platforms."
The $11.2 million fine is the maximum allowable under Italy's consumer laws for these actions.
It also follows Apple being fined the same sum in 2020, that time over claims it misled consumers in marketing the water-resistance of its iPhones.
15 Comments
Wow ... Italy seems determined to drive tech companies out of its borders.
What practices is it claiming Apple is engaging in? ... that it keeps the names of its customers and promotes new products to those customers?
How is that any different from any company that exists within Italy?
It almost seems like they're using tech companies as an income stream.
Let me see if I understand. If my fashion boutique categorizes all the people entering the store, passing by the racks of clothing, by age, look, style, by the location of where the trendy stuff is, by the lighting of the store, and how it influences the purchases, and on, and on. Then, make the proper arrangements and division of the potential of the clients browsing, purchasing, abandoning the stuff that they don’t like, what colours are more popular…, and I keep track of all the variations. Make a successful shop; and I refuse to share the information with the lazy guy across the hall. And, I grow because of my ingenuity, solutions, innovation, and as a result I leave the competition on the dust…, then, I am forced to share my data…?
Jayzzzuuuzzzzzz.