EU to Fine Apple, Meta for DMA Breaches

The European Union is expected to impose modest fines on Apple and Meta for alleged breaches of the Digital Markets Act (DMA), according to sources familiar with the matter.

The Act, introduced in 2023, aims to limit the dominance of major tech firms and foster fair competition by ensuring greater interoperability between online services.

Despite the possibility of penalties reaching up to 10% of a company’s global annual turnover, the European Commission is reportedly opting for lighter fines, focusing on compliance rather than punitive measures.

This approach takes into account the relatively recent implementation of the law and geopolitical tensions, including recent U.S. threats of tariffs in response to EU regulations. A final decision on the fines is expected by the end of the month.

Both Apple and Meta have acknowledged compliance challenges in their regulatory filings, citing potential conflicts with EU antitrust rules. The companies have also faced criticism over their perceived reluctance to fully comply with the DMA’s provisions.

Also Read: Digital Markets Act: EU to Review Apple’s iPad OS Compliance

Meanwhile, EU lawmakers have rejected U.S. accusations that the DMA unfairly targets American tech giants. They argue that the regulation applies to all firms classified as “gatekeepers”, regardless of nationality, and highlight that some U.S.-based companies such as Epic Games and DuckDuckGo support the law as it levels the playing field against dominant players like Apple and Google.

The DMA is designed to enhance competition in European digital markets by preventing large platforms from leveraging their market power to stifle smaller rivals. Companies found to violate its regulations could face escalating sanctions, including fines of up to 10% of global revenue and, in extreme cases, the forced sale of parts of their businesses.

As the EU moves forward with enforcing the DMA, the focus remains on achieving compliance and fostering a fair digital marketplace while balancing international relations and the interests of various stakeholders.