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Three people with direct knowledge of the matter said on Friday that Apple and Meta Platforms are expected to be charged by the European Commission for failing to comply with the Digital Markets Act (DMA) before the summer, according to sources with direct knowledge of the situation.
This landmark legislation aims to curtail the dominance of major tech companies and foster competition by creating space for smaller rivals and making it easier for users to switch between online services.
Priority Cases:
In March, the European Commission initiated investigations into Apple, Meta, and Google’s compliance with the DMA. Apple and Meta have been identified as priority cases in this context.
The Commission plans to issue preliminary findings—akin to antitrust charges—before the summer break in August. Apple is expected to be the first to face charges, followed by Meta.
Regulatory Focus:
Apple
The EU’s investigation into Apple centers on its steering rules and newly imposed fees on app developers. Regulators argue that these rules prevent developers from informing users about offers outside the Apple App Store without incurring charges. A separate investigation into Apple’s choice screen for its Safari web browser is expected to take longer.
Meta
Meta is under scrutiny for its “pay or consent” model, which requires users to pay a subscription fee for an ad-free experience on Facebook and Instagram or consent to personalized ads. This model has raised concerns regarding user autonomy and competition in digital advertising.
Potential Consequences:
Companies violating the DMA could face fines of up to 10% of their global annual turnover.
These preliminary findings allow companies to offer remedies before a final decision is made.
The Commission aims to conclude these cases before EU antitrust chief Margrethe Vestager’s term ends in November.
Responses:
- Apple: In its March statement, Apple expressed confidence in its compliance with the DMA and indicated ongoing constructive engagement with the European Commission. Apple declined to comment on the latest developments.
- Meta: The company declined to comment on the ongoing investigation.
Industry Impact:
The EU’s proactive stance under the DMA represents a significant regulatory effort to balance the scales in the tech industry, ensuring that smaller companies have a fair chance to compete.
These cases against Apple and Meta will likely set precedents for how the DMA is enforced.
