EU Set to Impose Fines on Apple and Meta for Digital Markets Act Violations
The European Commission is preparing to announce penalties against major tech firms for breaches of digital regulations amid ongoing trade tensions.
The European Commission is expected to announce fines against Apple and Meta in connection with violations of the Digital Markets Act (DMA) as early as next week.
This follows a formal investigation that was initiated in 2024, with allegations of non-compliance relating to the companies' practices.
Both firms have been scrutinized for their respective business models, which are reported to contravene obligations set by the DMA.
Apple's App Store management policies and Meta's 'pay or consent' advertising model, which requires users to either pay to avoid advertisements or allow data usage without payment, have drawn particular scrutiny.
The penalties could reach up to 10% of the global revenue of the companies involved; however, there are indications that the Commission may impose fines significantly lower than this maximum threshold.
Consultations with EU member states were held last week, indicating a consensus among the 27 member nations to support the conclusion of the investigation, which marks the first action under the DMA.
Such support strengthens the Commission’s position as it finalizes its decision, which will occur via a written procedure from its headquarters in Berlaymont.
Sources involved have clarified that the principal aim of the DMA, as well as the Digital Services Act (DSA), is not to impose punitive measures, but rather to foster compliance with regulatory standards among large technology firms.
There are concerns that the timing of the fines may be affected by ongoing negotiations regarding retaliatory tariffs, particularly in light of recent announcements by U.S. authorities.
The risk exists that the fines could be interpreted as direct retaliation against newly imposed tariffs, potentially complicating diplomatic discussions.
Additionally, recent reports indicated that X (formerly Twitter) may also face a fine exceeding one billion dollars related to violations of the DSA concerning illicit content and misinformation.
However, this information was subsequently denied by the spokesperson for the European Commission, Thomas Regnier.
This follows a formal investigation that was initiated in 2024, with allegations of non-compliance relating to the companies' practices.
Both firms have been scrutinized for their respective business models, which are reported to contravene obligations set by the DMA.
Apple's App Store management policies and Meta's 'pay or consent' advertising model, which requires users to either pay to avoid advertisements or allow data usage without payment, have drawn particular scrutiny.
The penalties could reach up to 10% of the global revenue of the companies involved; however, there are indications that the Commission may impose fines significantly lower than this maximum threshold.
Consultations with EU member states were held last week, indicating a consensus among the 27 member nations to support the conclusion of the investigation, which marks the first action under the DMA.
Such support strengthens the Commission’s position as it finalizes its decision, which will occur via a written procedure from its headquarters in Berlaymont.
Sources involved have clarified that the principal aim of the DMA, as well as the Digital Services Act (DSA), is not to impose punitive measures, but rather to foster compliance with regulatory standards among large technology firms.
There are concerns that the timing of the fines may be affected by ongoing negotiations regarding retaliatory tariffs, particularly in light of recent announcements by U.S. authorities.
The risk exists that the fines could be interpreted as direct retaliation against newly imposed tariffs, potentially complicating diplomatic discussions.
Additionally, recent reports indicated that X (formerly Twitter) may also face a fine exceeding one billion dollars related to violations of the DSA concerning illicit content and misinformation.
However, this information was subsequently denied by the spokesperson for the European Commission, Thomas Regnier.
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