Italy's Competition Authority fined Apple and Google 10 million euros for allegedly using user data for commercial purposes without their explicit consent.
The authority claims that both Apple and Google use user data without the user's consent. The press release states that Apple "directly exploits the economic value" of user data it collects to "increase the sale of its products and/or those of third parties through its commercial platforms."
The watchdog claims that neither Apple nor Google gives users enough information to know that their data will be used for commercial purposes. The fine claims that Apple doesn't give users a way to opt out of commercial use of their data. The machine translation is as per the press release.
In the case of Apple, the promotional activity is based on a method of obtaining consent to the use of user data without giving the consumer a choice on sharing their data. It is not possible to use one's data for commercial purposes if one does not have a will. The consumer is conditioned in the choice of consumption and undergoes the transfer of personal information, which Apple can dispose of for its own promotional purposes.
The Italian authority said that when users create an Apple ID, which is essential for accessing any of Apple's services, Apple does not immediately and explicitly provide the user with any indication on the collection and use of their data for commercial purposes. The watchdog said that Apple only tells users that their data will be used to improve and personalize their experience, not that it will be used for commercial purposes.
When using the App Store, Apple shows users a splash screen that informs them that Apple may use some of their data to personalize their experience. The authority outlines Apple's lack of acknowledgment that data would be used for commercial purposes, but fails to provide evidence that Apple has done so.
Apple's privacy policy states that the company will only use personal data to power its services, comply with local laws, prevent fraud, and for communication objectives. Apple's privacy policy states that personal data may be used for other purposes only with user consent.
Italy's competition watchdog fined Apple $150 million for alleged anti-competitive practices. The investigation found that Apple and Amazon were trying to stifle competition by limiting the sales of Beats products through third-party retailers. Apple didn't respond to our request for comment about today's fine.
