Apple Inc. and Meta Platforms Inc. are set to face relatively modest fines from the European Commission for alleged breaches of the Digital Markets Act (DMA), as reported by Reuters citing sources familiar with the matter.
While the act permits fines of up to 10% of a company’s global annual sales, the Commission is reportedly prioritizing compliance over punitive action.
The DMA, which came into force in May 2023, was designed to enhance competition by making it easier for users to transition between competing online services, including social media platforms, internet browsers, and app stores. The regulation aims to reduce the dominance of major technology firms and provide smaller companies with a more competitive landscape.
According to sources with direct knowledge of the situation, the EU’s antitrust enforcer is primarily focused on ensuring compliance with the new legislation rather than imposing heavy financial penalties. The relatively short duration of the alleged infractions, as well as prevailing geopolitical factors, have contributed to the decision to impose only moderate fines. Notably, U.S. President Donald Trump recently issued a memorandum threatening tariffs against countries that levy fines on American corporations, though the European Union has denied any discriminatory targeting of U.S. tech firms.
While a final decision on the exact fines has not yet been determined, sources indicate that an announcement is expected within the month. This timeline aligns with earlier statements made by EU antitrust chief Teresa Ribera, who confirmed in February that enforcement actions were forthcoming.
Both Apple and Meta have expressed concerns regarding the implementation of the DMA. In a compliance report published last week, Meta asserted that it has made extensive efforts to adhere to EU regulations but continues to receive regulatory demands that exceed the letter of the law. Similarly, in a report dated March 7, Apple reiterated its concerns that the regulatory changes mandated by the DMA could expose users and developers to heightened risks of malware, fraud, and scams.
The European Commission has declined to comment on the matter. However, industry analysts suggest that the enforcement of the DMA and the associated penalties could set a precedent for future regulatory actions against major technology firms operating in the European market.
