EU levels substantial penalties against Apple and Meta for breaching competition rules
EU Slaps Major Finishes on Apple and Meta for DMA Violations
The European Commission has levied significant fines against tech titans Apple and Meta, totaling €700 million, for alleged infringements of the Digital Markets Act (DMA). This is the first time the commission has imposed fines under the DMA, which aims to curb dominant market positions that may disadvantage other providers.
Apple, accused of violating anti-steering provisions, faces a €500 million penalty. The commission asserts that the tech giant hinders app developers from making offers outside the App Store accessible to consumers, thereby preventing them from fully benefiting from alternative and more affordable options.
Meta, on the other hand, was fined €200 million due to its "pay-or-consent" model, which the commission deems non-compliant with EU law. This model does not offer users a genuine choice regarding the use of personal data. However, Meta has introduced a new version of this model with reduced data usage, which the commission is currently reviewing.
The DMA regulation, if complied with within the given timeframe, could mitigate the need for additional periodic penalty payments. Failure to comply could result in such payments until practices are adjusted.
The fines could exacerbate existing tensions between the EU and the US, with potential repercussions for the ongoing trade dispute. The Republican chairman of the US Federal Trade Commission, Andrew Ferguson, has previously expressed concerns that the DMA could be seen as a form of taxation on American companies.
nonetheless, the EU Commission maintains that the proceedings against American tech giants are independent of the current trade dispute. Last week, EU Commission President Ursula von der Leyen proposed taxes on advertising revenues for large online platforms, separate from the ongoing proceedings.
In terms of financial implications, Apple reported a turnover of around $400 billion (€350 billion) last year, while Meta’s value stands at approximately $165 billion. Potential penalties under the DMA could reach up to ten percent of global annual turnover for non-compliance, with repeat offenders facing fines of up to 20 percent.
These fines underscore the EU's commitment to enforcing the DMA, which could have significant implications for the US-EU trade relationship, potentially leading to increased tensions and calls for similar regulatory actions in the US.
The technology giants Apple and Meta were fined €700 million by the European Commission for DMA violations. Apple's alleged violations include hindering app developers from offering alternatives outside the App Store, while Meta was fined for its non-compliant "pay-or-consent" model.
