Wrong and wrong. It isn't free, and it extends the original warranty-- it doesn't expand its provisions.
Of course it does.
If your MacBook Pro or iPad breaks down after 4 months, then Apple's one year warranty gets it fixed, and your statutory rights would get it fixed as well.
If your MacBook Pro or iPad breaks down after 7 months, then Apple's one year warranty gets it fixed, but your statutory rights would only get it fixed after you prove that the computer broke because a fault when you bought it.
If your MacBook Pro or iPad breaks down after 13 months, then Apple Care gets it fixed, but your statutory rights would again only get it fixed after you prove that the computer broke because a fault when you bought it.
A fault which wasn't present for the 12 months of the warranty. It just suddenly happened. Apple isn't under any obligation even with this EU law do to anything unless you can prove it was faulty from day one. But the fact that you could use it as prescribed for 14 months will blow that argument.
That's not how it works. That button might have been slightly damaged from day one, or it might have been incorrectly mounted so that there was excessive wear each time it was pressed, and it might have stopped working after 14 months because of a fault that was present from the first day. Still, you'd have to prove that it stopped working because of such a fault.
I am sorry, but Apple's web-page is still showing only 1year of warranty; and that is in violation of current EU laws:
http://www.apple.com/it/support/products/mac.html
Not in violation with EU laws. When you buy something, you get two warranties: Whatever warranty the manufacturer gives you voluntarily, and whatever warranty you get by law (statutory warranty). They are independent. So for one year you can demand a repair because of Apple's warranty, and from then on you can demand a repair because of your statutory rights. Just remember that the terms are different.
Now this article
http://latimesblogs.latimes.com/technology/2011/12/apple-fined-italy-applecare-warranties.html has a link to the original statement and a google translation. I'd say I wouldn't trust the translation on any finer legal points, so the "two year warranty" mentioned is most likely not the same as what we would normally call a warranty. The important things seem to be that (1) Apple stated that they give one year warranty, and they should have told customers that Apple would have to make repairs for longer time depending on circumstances, and (2) when Apple sells Apple Care, they should have told customers that some things covered by Apple Care might already be covered otherwise, depending on the circumstances.
In the UK, you always see the magic words "This does not affect your statutory rights". So in the UK, Apple would have to say "we give you one year warranty ... terms and conditions ... blah blah blah This does not affect your statutory rights" where they sell computers, and they would have to say "gives you three years warranty instead of one year warranty ... blah blah blah ... some damages covered by Apple Care may also be covered by your statutory rights". Should have hired a good lawyer to check their website.