Apple and Meta to face penalties for alleged violations of the EU's DMA.
Fines could be lower than they could end up being.
Meta and Apple are facing smaller fines than allowed for alleged violations of the European Union's Digital Markets Act (DMA). This law, in effect since May 2023, aims to promote competition on the continent by making it easier for users to switch between online services. While penalties could reach up to 10% of global annual sales if the companies are found guilty, it is believed that the EU's priority may lie more in ensuring compliance with the regulations than in imposing severe punishments.
Both companies could emerge relatively unscathed from this situation, as the implementation of the DMA is recent, meaning that the period for potential violations has been short. Moreover, it is suggested that geopolitical factors could influence the decision, considering that former U.S. president Donald Trump has threatened to impose tariffs on countries and penalize American businesses.
Despite this, European Commission President Ursula von der Leyen criticized Trump's political strategy, emphasizing the need to adhere to principles and values, and highlighting that there can be no negotiations on human rights or European unity.
The European Union is expected to make a decision on this matter later this month, according to unidentified sources. For Apple, this could entail changes in how users uninstall software and modify default settings on iOS. Meanwhile, Meta has come under scrutiny for launching an ad-free subscription service in Europe.
Both companies have been contacted for comments regarding the potential fines related to the DMA. Apple has not responded immediately, while Meta has directed the inquiry to a blog announcing a 40% reduction in the price of its ad-free service starting in November 2024. Although Meta has not wanted to comment on the speculation, the company previously mentioned that this is the second time in a year that it is making significant changes to its business model in the EU to adapt to regulatory feedback, highlighting its commitment to compliance with the evolving regulations of the bloc.
