Italy opens first DMA probe into Apple over iCloud access

Key Takeaways

• Italy's AGCM opened its first investigation under the Digital Markets Act, targeting Apple's cloud service interoperability practices
• Third-party cloud providers allegedly cannot access the same iOS and iPadOS components as iCloud, creating an uneven playing field
• Apple faces potential fines of up to 10% of global annual turnover for a first-time DMA breach

Italy's competition regulator has opened the first national investigation under the Digital Markets Act, targeting Apple's restrictions on third-party cloud services. The Italian Competition and Market Authority (AGCM) says it has evidence that rival cloud providers cannot access the same iOS and iPadOS components that Apple reserves for iCloud.

The investigation will determine whether Apple violates DMA interoperability requirements by keeping system-level features, including full device backups, exclusive to its own service. If confirmed, this would represent a textbook case of platform self-preferencing, the exact behavior the DMA was designed to prevent.

What is Italy accusing Apple of doing?

Under DMA rules, designated gatekeepers like Apple must allow third-party consumer cloud services to interoperate effectively and free of charge with hardware and software components they control. The AGCM claims Apple falls short of this standard.

“The investigation aims to assess whether Apple's restrictions on third-party cloud services accessing iOS features violate the interoperability requirements set out by the Digital Markets Act.”

— Italian Competition and Market Authority (AGCM)

Specifically, the regulator found proof that third-party cloud providers do not appear to have access to the same components used or made available to Apple's iCloud service. This asymmetry puts competitors at a structural disadvantage when trying to offer comparable backup, sync, or storage features to iPhone and iPad users.

Why this investigation matters for Apple's European business

This probe marks the first time a national regulator has invoked its DMA-granted powers to assist the European Commission in enforcing interoperability mandates. The DMA allows national authorities to conduct preliminary investigations, with findings sent to Brussels for potential enforcement action.

The stakes are substantial. A first-time DMA violation can result in fines up to 10% of total global annual turnover. Repeated non-compliance raises that ceiling to 20%. For Apple, which reported $383 billion in revenue for fiscal 2024, even the lower threshold translates to potential penalties exceeding $38 billion.

Apple has already faced EU pressure to open its ecosystem in other areas. The company was forced to adopt USB-C charging and permit app sideloading in Europe. Cloud backups, however, represent something different: a core lock-in mechanism that keeps users dependent on Apple's services beyond hardware purchase.

What third-party cloud providers cannot do today

The core complaint centers on system-level access. iCloud can perform full device backups that capture app data, settings, and system configurations. Third-party services like Google Drive, Dropbox, or OneDrive cannot replicate this functionality because Apple restricts access to the necessary APIs and system hooks.

This creates a practical problem for users who prefer alternative cloud providers. They can back up photos and documents, but not their entire device state. Switching away from iCloud means accepting reduced functionality, which critics argue amounts to coercive retention rather than genuine user choice.

Online discussions have highlighted skepticism about the investigation's likely impact. Some argue that forcing Apple to expose system-level backup APIs could create security vulnerabilities. Others counter that Apple already exposes these capabilities to iCloud, so the security argument rings hollow when applied selectively to competitors.

What happens next in the investigation

The AGCM will conduct its investigation and send findings to the European Commission. Brussels then decides whether to pursue formal enforcement action against Apple. This process can take months, and Apple will have opportunities to respond and potentially modify its practices before any ruling.

Apple has not publicly commented on the Italian probe. The company has previously argued that its ecosystem restrictions protect user privacy and security, a defense it has deployed against similar regulatory challenges. Whether this argument will hold up under DMA scrutiny remains to be seen.

Frequently asked questions

Frequently Asked Questions

What is the Digital Markets Act?

The Digital Markets Act is EU legislation that imposes obligations on large tech platforms designated as gatekeepers. It requires these companies to ensure fair access to their ecosystems, including allowing third-party services to interoperate with their platforms.

Can Italy fine Apple directly under the DMA?

No. Italy's AGCM conducts preliminary investigations and sends findings to the European Commission. Brussels retains enforcement authority and decides whether to pursue fines or other remedies.

What could Apple be required to do if found in violation?

Apple could be required to open iOS and iPadOS APIs to third-party cloud providers, allowing them to offer full device backup capabilities comparable to iCloud. The company could also face fines up to 10% of global revenue.

Does this affect Apple users outside Europe?

Not directly. The DMA applies only to EU users. However, if Apple makes technical changes to comply in Europe, the company may extend those changes globally rather than maintain separate regional systems.

Has Apple faced similar DMA investigations before?

Yes. The European Commission has previously investigated Apple's App Store policies and browser restrictions under DMA rules. This Italian probe is notable as the first national-level investigation using DMA powers.

Source: Tech-Economic Times / ET