Italy fines Apple, Google, $11 million over use of customer data

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

verne arase 11 Years · 479 comments

About 3 years ago

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.

lorca2770 15 Years · 72 comments

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.

crowley 15 Years · 10431 comments

lorca2770 said:

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.

It's more like a shopping mall owner also running a store within the mall, and using its knowledge of how people move through the mall to the benefit of their store and the detriment of the other stores. Or even changing the way the mall works to push people into its own store.

The problem is the platform owner, or company in a position of power, that is able to steer traffic and customer behaviour, and also being privy to a large amount of customer data, is able to use that to a competitive advantage in other, unrelated, or largely unrelated commercial activity. Google uses its power in search to push its web browser, web applications, shopping, and other services. Apple uses its power in operating systems and app stores to push its associated applications and services. This kind of use of power is what antitrust is all about.

It's not much different from Microsoft pushing Internet Explorer in the 1990s, which they were convicted over, in the USA.

avon b7 20 Years · 8046 comments

lorca2770 said:

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.

Perhaps you missed the part about failing to adequately inform customers of how their data was being used and how they were using aggressive means to accumulate that data in the first place.

xyzzy-xxx 6 Years · 201 comments

avon b7 said:

lorca2770 said:

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.

Perhaps you missed the part about failing to adequately inform customers of how their data was being used and how they were using aggressive means to accumulate that data in the first place.

In Europe customer consent must be opt in, Italy accuses Apple that some checkboxes are checked by default.