Apple, Meta Face EU Sanctions for Failing to Comply with Market Rules

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Apple, Meta Face EU Sanctions for Failing to Comply
An Apple Inc. logo seen outside the new Apple store at the Tun Razak Exchange (TRX) on June 20, 2024, in Kuala Lumpur, Malaysia. Annice Lyn/Getty Images/Getty Images

Apple and Meta are facing potential fines from the European Union (EU) for not following important rules under the Digital Markets Act (DMA).

These fines could be part of the EU's efforts to limit the power of large tech companies and ensure fair competition in the market.

The EU has been closely investigating both companies for violating key aspects of the DMA. The law, which targets big tech firms, aims to prevent them from using their market dominance to unfairly limit competition.

According to reports, the European Commission is expected to impose "modest fines" on Apple and Meta for not meeting the requirements of the DMA.

Apple, in particular, has been under scrutiny since last year for not following the DMA's anti-steering rules.

These rules require companies like Apple to allow developers to inform customers about lower prices available outside of the App Store.

The European Commission found that Apple did not do enough to follow these rules, which led to concerns from European regulators.

In response, Apple made some changes to its App Store rules, including allowing for app marketplaces and app distribution outside of its platform, MacRumors said.

The company also adjusted its fee structures to comply with the DMA.

However, these changes did not fully satisfy the European Commission, and further adjustments were required, particularly to Apple's external linking rules. Despite these updates, the European Commission has continued to review Apple's compliance with the law.

EU Set to Impose Modest Fines on Apple and Meta for DMA Violations

The fines, while not expected to be huge, are still a sign that the EU is serious about enforcing the Digital Markets Act.

According to Reuters, the law allows for penalties of up to 10% of a company's global annual sales, but EU regulators have indicated that they prefer to focus on ensuring compliance rather than imposing large financial penalties.

Meta also faces similar issues under the DMA and is expected to receive a fine. The tech giant has been accused of breaching the same rules as Apple, though details of its violations have not been fully disclosed.

These fines come at a time when there has been growing tension between the EU and the US over tech regulations.

Former US President Donald Trump had previously criticized the EU for targeting American companies with fines, and it remains to be seen whether the US government will take action in response to the new sanctions.

The EU's decision on the fines is expected by the end of March. While the size of the penalties is still unclear, the outcome will likely set the tone for future enforcement of the Digital Markets Act against other tech companies.

As of now, the situation is still developing, and more information may become available once the final ruling is made.

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Apple, Meta

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