Tech giants Apple and Meta to avoid sanctions for non-compliance with EU digital rules - Media
Kyiv • UNN
Apple and Meta will not face immediate sanctions for non-compliance with EU digital rules. Financial penalties will only be applied after prior analysis, not automatically, after a sixty-day grace period.
American tech giants Apple and Meta will not face immediate sanctions for failing to comply with their obligations under the European Union's digital rulebook. This is reported by Euronews, citing the EU press service, reports UNN.
Details
In April, the European Commission fined Apple €500 million and Meta €200 million for non-compliance with the Digital Markets Act (DMA) and gave both companies 60 days to bring their practices into line with EU rules. This grace period ends on June 26, after which they risk periodic penalty payments.
According to an EU spokesperson, financial penalties will not be applied automatically, but only after the Commission has conducted a preliminary analysis and shared its findings with the two tech giants as part of an ongoing information sharing process.
Apple was fined €500 million for prohibiting developers from redirecting users to alternative offers or content outside its platform, which is considered an action contrary to DMA rules.
Meta was fined €200 million for its 'pay or consent' model, which the Commission found problematic. The model forces users to either agree to the use of their personal data for targeted advertising or pay for an ad-free subscription, limiting user choice.
In response, Meta introduced a revised version of its personalized advertising model in November 2024, which uses less personal data. The Commission is still evaluating this system, continuing negotiations with the company.
Compared to previous antitrust enforcement, the fines imposed in April were relatively modest. During the tenure of former EU Competition Commissioner Margrethe Vestager, tech giants faced more significant penalties.
In April, EU officials explained that the lower fines reflected the short period of violations since the DMA's implementation in 2023 and the Commission's current focus on achieving compliance rather than punishing infringements.
US digital services have become entangled in an escalating trade war between the US and the EU since mid-March. In response to US tariffs, Commission President Ursula von der Leyen threatened to impose a tax on digital advertising revenue.
Meanwhile, a report by the US Trade Representative, published in early April, called EU digital rules a barrier to US exports.
The Digital Markets Act (DMA) is designed to prevent dominant digital platforms from abusing their market power. It aims to open up digital ecosystems controlled by large tech companies and ensure users have genuine freedom of choice online.
Additions
Apple has appealed the European Commission's specifications on how it complies with its interoperability requirements, which oblige it to share user information with third-party developers under the Digital Markets Act (DMA).