Key Points:
- Italy’s antitrust regulator, AGCM, launched an investigation into Apple’s compliance with the EU Digital Markets Act interoperability rules.
- The watchdog accuses Apple of locking rival cloud providers like Google Drive and Microsoft OneDrive out of core iOS and iPadOS backup features.
- This probe marks the first time a national European regulator has used preliminary investigative powers under the landmark gatekeeper framework.
- Apple defended its practices, stating it complies with digital rules and has never had these iCloud concerns raised by the European Commission.
Italy’s competition watchdog has launched a groundbreaking antitrust investigation into Apple, targeting whether the company illegally favors its own iCloud platform over competitors. The national competition authority, AGCM, announced that it is examining Apple’s compliance with the European Union’s landmark Digital Markets Act. This investigation represents the first major test of how a national European regulator can deploy preliminary investigative powers to support the broader enforcement of continental technology rules. The inquiry focuses on whether the tech giant restricts rival consumer cloud providers from accessing critical device features on millions of iPhones and iPads.
At the heart of the Italian probe is the allegation that Apple refuses to provide competing cloud storage operators with equal access to the iOS and iPadOS operating systems. According to the regulator, third-party consumer cloud services, such as Google Drive and Microsoft OneDrive, do not enjoy the same software and hardware integrations available to Apple’s native iCloud service. Specifically, the watchdog claims that Apple does not allow alternative cloud services to utilize built-in backup tools that enable users to perform a full system backup of their device data. This limitation effectively forces consumers to rely on iCloud if they want a seamless, automated backup experience.
The legal framework driving the investigation is the European Union’s Digital Markets Act, which officially designated Apple as a digital “gatekeeper.” Under the rules of the framework, gatekeepers must guarantee that third-party developers receive free and effective interoperability with the same hardware and software features controlled by the operating system. The law aims to prevent dominant platforms from self-preferencing their own apps and services at the expense of independent competitors. By allegedly restricting rival cloud platforms from accessing device-level backup functions, Apple could be in direct violation of these pro-competitive mandates.
Apple quickly issued a statement defending its practices and expressing readiness to cooperate with the Italian watchdog to address the concerns. The company maintained that it has fully met its interoperability obligations under the digital gatekeeper rules. Notably, Apple pointed out a gap in prior regulatory feedback, stating that the specific concerns related to iCloud and system backups had never been raised in its extensive, ongoing discussions with the European Commission. The technology giant routinely defends its closed ecosystem by arguing that opening up deep-level operating system functions to third parties compromises user data privacy and cybersecurity.
This latest probe is not an isolated event but rather fits into an established, adversarial relationship between Italian regulators and the Silicon Valley giant. Over the years, the Italian Competition Authority has repeatedly targeted Apple’s business model. The watchdog previously fined the company over misleading warranty advertisements and, more recently, slapped Apple with a €98.6 million penalty over its App Tracking Transparency rules, which regulators found unfairly penalized third-party developers. This history suggests that the Italian regulator is prepared to take a hard line on cloud interoperability as it scrutinizes the company’s compliance.
The case is also drawing intense interest from global antitrust lawyers because of how the investigation is structured. Under the gatekeeper rules, the European Commission serves as the sole official enforcer of the regulation. However, Italian authorities are utilizing specific preliminary investigative powers under Article 38(7) of the act, which allows national watchdogs to gather evidence, conduct local audits, and build cases. Once the AGCM completes its local proceedings, it will forward its compiled findings directly to the European Commission in Brussels. This collaborative approach shows how national European governments intend to act as active local police forces for continental digital regulations.
The financial stakes for Apple are exceptionally high if European regulators determine that the company violated its gatekeeper obligations. Under the established rules of the Digital Markets Act, the European Commission can impose massive financial penalties on non-compliant gatekeepers. First-time violators can face fines of up to 10% of their total worldwide annual revenue. For repeat offenders, those fines can escalate to an astounding 20% of global turnover. Given Apple’s multi-trillion-dollar market capitalization and massive annual revenues, even a minimum penalty would translate into billions of dollars in fines, potentially forcing a major overhaul of its services business.
The intensifying regulatory pressure in Europe is already beginning to reshape how Apple launches its latest products in the region. Citing strict interoperability and competition requirements, Apple recently announced that it would indefinitely delay the rollout of its highly anticipated Siri AI and advanced Apple Intelligence features in the European Union. Senior executives blamed the European Commission’s refusal to negotiate constructive compromises that preserve user privacy. Industry analysts suggest that Apple may adopt a similar hardline stance regarding its cloud storage business, preferring to delay new features or limit regional updates rather than open up its proprietary source code.
As the Italian investigation moves forward, the outcome will likely dictate the future of the multi-billion-dollar mobile cloud storage industry. If regulators force Apple to open its operating systems, third-party storage providers will finally be able to offer seamless, one-click device backups to hundreds of millions of iPhone users worldwide. This shift could trigger a massive migration of users away from iCloud, drastically increasing market competition and lowering subscription prices for consumers. For now, the entire tech industry is watching closely to see whether Europe’s aggressive gatekeeper rules will successfully dismantle Apple’s highly profitable, closed-loop software ecosystem.
