Italy’s AGCM Investigates Apple for Allegedly Disadvantaging Alternative Cloud Providers on iPhone/iPad with iCloud

Italy’s antitrust watchdog has opened a formal investigation into Apple over claims the company is using iCloud to disadvantage competitors under the EU’s Digital Markets Act (DMA), according to a report from heise online citing sources familiar with the matter. The probe marks the latest regulatory challenge for Apple as European authorities scrutinize its market dominance in cloud services, app distribution, and device ecosystems.

The Italian Autorità Garante della Concorrenza e del Mercato (AGCM) is examining whether Apple’s integration of iCloud with iPhones and iPads violates DMA rules by imposing unfair restrictions on third-party cloud providers. Under the DMA, "gatekeeper" platforms like Apple must allow alternative services equal access to core functionalities—such as storage, authentication, or app distribution—without favoring their own offerings. The AGCM’s inquiry follows similar probes by the European Commission and national regulators in Germany and France, which have targeted Apple’s App Store policies and cloud ecosystem.

Why does this matter?
The DMA investigation into iCloud could set a precedent for how European regulators interpret "interoperability" and "fair competition" in cloud services. If Apple is found to have violated the rules, it could face fines of up to 10% of global annual revenue—potentially billions—and be forced to restructure how iCloud interacts with third-party services. For competitors like Google (Drive), Microsoft (OneDrive), and Dropbox, a ruling against Apple could open doors to deeper integration with iOS devices, a long-standing demand from cloud providers frustrated by Apple’s walled-garden approach.

What are the specifics of the investigation?
Sources tell heise online that the AGCM is focusing on three key areas:

1. Exclusive default status: iCloud is the default cloud storage option on iPhones and iPads, with no equivalent "opt-in" mechanism for alternatives at setup. The DMA requires gatekeepers to allow users to choose third-party defaults for core services.
2. Data portability restrictions: Apple’s handling of user data—such as photos, contacts, and app data—favors iCloud over competitors, making it difficult for users to migrate seamlessly to other services. The AGCM is reviewing whether this constitutes an "unfair advantage" under Article 6 of the DMA.
3. App Store and ecosystem lock-in: Developers relying on iCloud for authentication or storage face barriers when offering alternatives, reinforcing Apple’s control over the iOS ecosystem. The probe may overlap with ongoing cases in Germany and France, where regulators have challenged Apple’s App Store rules for similar concerns.

How does this compare to other DMA cases?
Apple is not the only tech giant under scrutiny for DMA compliance. The European Commission has already fined Microsoft €20 million in 2023 for failing to provide adequate interoperability with third-party cloud services, while Meta faces probes over its control of the Android app ecosystem. However, Apple’s case is distinct due to its vertical integration: unlike Microsoft or Google, Apple controls both the hardware (iPhones/iPads) and the cloud service (iCloud), creating a tighter lock-in effect.

In Germany, the Federal Cartel Office (Bundeskartellamt) is separately investigating whether Apple’s App Store policies violate DMA rules by requiring developers to use its in-app purchase system exclusively. A decision in that case could influence the AGCM’s findings on iCloud, particularly regarding how Apple enforces its own services as mandatory for developers.

What happens next?
The AGCM’s investigation is still in its preliminary stages, with no confirmed timeline for a decision. Under the DMA’s accelerated process, regulators have up to six months to issue a preliminary assessment, though complex cases may take longer. If the AGCM finds Apple in violation, it could refer the case to the European Commission for a broader ruling—similar to how Germany’s Bundeskartellamt referred its App Store case to Brussels in 2023.

Apple has not yet commented publicly on the Italian probe, but the company has previously defended its practices, arguing that iCloud’s integration is essential for user experience and security. In a 2023 statement to the European Commission, Apple said its cloud services were designed to "work seamlessly" with iOS devices, but did not address concerns about competitive fairness.

Broader implications for tech and regulation
The AGCM’s probe underscores the EU’s aggressive approach to enforcing the DMA, which took effect in 2022 and has already led to fines, structural changes, and legal challenges across the tech industry. For Apple, the investigation adds pressure as it navigates multiple regulatory fronts—including antitrust cases in the U.S. and ongoing disputes with developers over App Store fees.

Cloud providers outside Apple’s ecosystem see the DMA as an opportunity to challenge the status quo. "This is a critical test for whether Apple can maintain its closed ecosystem under EU law," said a spokesperson for the European Digital Services Forum, which represents alternative cloud and app developers. "If the AGCM rules against Apple, it could force a rethink of how tech giants design their services for interoperability."

For users, the outcome may translate to more choices in cloud storage, but experts warn that Apple could respond with technical workarounds—such as further restricting third-party access to device APIs—to preserve its control. The case also highlights the tension between innovation and competition in tech regulation, as policymakers grapple with balancing consumer choice against the risks of fragmentation in digital services.