- Meta and Apple could be facing smaller-than-allowable fines
- Europe just wants them to be compliant with the DMA
- President Trump moves could also be influencing the decision
Apple and Meta are both facing modest fines for allegedly breaching the European Union’s Digital Markets Act (DMA).
The relatively new Act, which came into force in May 2023, is designed to increase competition across the continent by making it easier for users to switch their online services.
If found guilty, violations could result in fines of up to 10% of global annual sales, but it’s believed that the EU could be prioritizing compliance over any hefty penalties.
The two companies are set to come out relatively unscathed – the fact the DMA only came into force less than two years ago means that the total time of violations has been relatively short. It’s possible that geopolitical considerations are also at play, with US President Donald Trump threatening to impose tariffs against countries and fine US companies.
That said, President Ursula von der Leyen criticized Trump’s tit-for-tat political strategy in an interview with Reuters: “We need to stick to our strengths and principles,” she said. “We need to be flexible but we cannot transact on human rights nor are we going to transact on the unity of Europe, and we are not going to transact on democracy and values.”
The European Union is set to make a decision later this month, according to Reutersciting unnamed sources familiar with the matters.
For Apple, it means the company might have to address how users uninstall software and change default settings and apps on iOS. Meta has been criticized for introducing a no-ads subscription service in Europe.
Techradar pro has contacted both companies to respond to potential upcoming DMA fines. Apple didn’t immediately respond, but Meta pointed us in the direction of a blog which confirmed a 40% price reduction for its ad-free service in November 2024. Meta declined to comment on “speculation.”
At the time, the company said: “This is the second time in a year we have made significant changes to our business model in the EU to address regulatory feedback, which is testament to our commitment to complying with evolving EU regulations and offering people control over their experiences.”
Via Reuters