Apple, Meta to be fined for violating Europe's Digital-Markets Act
What's the story
Apple and Meta will face fines for allegedly breaching Europe's Digital Markets Act (DMA), as per Reuters. Both firms have been in the European Commission's crosshairs since 2024 for potential breaches that could cost them as much as 10% of their global annual sales. The DMA became law in May 2023, seeking to make it easier for people to move between competing online services and permitting smaller companies to compete with Big Tech.
Enforcement approach
EU focuses on compliance, not penalties
The European Union's antitrust enforcer is focused on making sure the companies comply with the DMA rather than sanctioning them with heavy penalties. This is due to the short duration of the alleged violations and the geopolitical climate. US President Donald Trump, in a memorandum in February, threatened to impose tariffs against nations that impose fines on US companies. However, the EU has denied targeting US tech giants specifically.
Fine imposition
Final decision on fines yet to be made
As of now, a final decision on the size of the penalties has not yet been taken, and the situation could still change. A decision is likely this month, in line with what EU's antitrust chief Teresa Ribera told Reuters in February. In a compliance report published last week, Meta claimed that despite its concerted efforts to comply with EU rules, it is still receiving demands from regulators that go beyond what is written in the law.
Compliance issues
Apple's compliance report raises concerns
In its DMA compliance report that was dated March 7, Apple reiterated its claims that changes imposed by the law bring higher risks to users and developers, including new avenues for fraud, malware, and scams.