According to this Reuters report, Apple is now complying with local warranty laws in Italy after the company was threatened by the Italian government with shut downs of its local businesses and hefty fines if it did not comply. Last week Apple stopped selling its AppleCare warranty plans in its retail stores in Italy. The paid warranty program from Apple offers coverage after the limited warranty on an Apple product expires. Apple had come under fire from the Italian government’s consumer watchdog agency in late 2011 for not making it clear to Italian consumers that they are entitled to a two-year free warranty under European law, and for selling AppleCare as an extended warranty that kicked in after just one year.
While the company is still selling its AppleCare warranty on its website in Italy, it has changed the wording to include the following in the description of its warranty product: "add to the two years of vendor warranty required by Italian law to protect consumers."
While Apple's warranty woes may have been taken care of in Italy, the European Union’s Justice Commission has been asking member countries if Apple is violating the two-year free warranty law in their countries…
Source: GIGA OM