Apple and Google have been fined by the Italian Competition Authority for two violations of the Consumer Code, one for lack of information and another for aggressive practices related to the acquisition and use of consumer data for commercial purposes. The result is a total fine of 20 million euros, but both Apple and Google have already announced that they intend to appeal because they consider the Authority’s conclusions to be groundless and therefore the fine of 10 million each is illegitimate.
The sanction against Apple follows closely one of over 130 million euros that the AGCM has imposed in Cupertino for having signed an agreement restricting competition with Amazon – also sanctioned.
APPLE AND GOOGLE EARN TWICE FROM USER DATA
With regard to Apple, assuming that Apple (like Google) collects and profiles user data through its services, the Antitrust has highlighted how, while keeping the data for itself, Apple uses them to personalize promotional activities in order to increase the turnover of own and/or third-party products and services on the App Store, iTunes Store and Apple Books, obtaining, at the close of the circle, an economic return.
In other words, if on the one hand, it is true that Apple does not sell data to third parties, on the other, Apple uses them to get rich. For the Authority, the fact that users give up their data to use Apple and Google services benefits the two companies even in the absence of a monetary outlay.
Apple, both in the phase of creating the Apple ID and on the occasion of accessing the Apple Stores (App Store, iTunes Store and Apple Books), does not immediately and explicitly provide the user with any indication on the collection and use of your data for commercial purposes, emphasizing only that data collection is necessary to improve the consumer experience and use of services.
Apple is accused of not allowing user to choose in advance whether to share their data for commercial purposes.
The consumer is conditioned in the choice of consumption and undergoes the transfer of personal information, which Apple may have for its own promotional purposes carried out in different ways. An Apple spokesperson pointed out that the company has long been committed to consumer protection and that it will appeal for this:
We do not agree with the opinion of the Authority and therefore we will appeal. At Apple, we have long been committed to protecting the privacy of our customers and working hard to create products and features that protect their data. We provide all users with a level of transparency and control over their industry-leading information so they can choose which ones to share and how it is used.
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GOOGLE ‘GUIDES’ THE USER TOWARDS THE TRANSFER OF DATA
Google was sanctioned for roughly similar reasons, namely the lack of clarity on the acquisition and use of data for commercial purposes. The Antitrust has highlighted that both during the creation of the account, which is essential for the use of the services, and in the use of the services themselves, Google omits information that otherwise would allow the consumer to make a conscious choice on the transfer and above all on the use of data from which Google then derives an economic advantage.
Google pre-sets the user’s acceptance of the transfer and/or use of their data for commercial purposes. This pre-activation allows the transfer and use of data by Google, once they are generated, without the need for other steps in which the user can from time to time confirm or change the choice pre-set by the ‘agency. A Google delegate commented on the AGCM’s provision announcing, like Apple, that it intends to appeal:
We have fair and transparent practices to provide our users with useful services, and we provide clear information on their use. We offer people the opportunity to manage their information through simple tools, also to limit the use of personal data, and we are committed to fully complying with consumer protection regulations. We disagree with the Authority’s decision and will appeal.