European Commission is imposing fines on Apple and Meta for DMA violations - FT

The European Commission will allegedly hand out fines to Apple and Meta this week for infringement of the Digital Markets Act (DMA). However, the amounts shall be minimal to prevent further escalation of tensions with President Donald Trump.

That’s what insiders have told the Financial Times.

Sources told the news outlet that Apple will be fined and ordered to change the terms and conditions of the App Store. The DMA dictates that developers are allowed to redirect consumers to offers outside the App Store. However, sources say that Apple prevented that.

Another DMA investigation into Apple is being concluded without further action. That one revolved around the browser selection screen on Apple’s operating system iOS.

Apple isn’t the only American tech company that’s being fined by the European Commission. The Commission has set its sight on Meta as well because of the company’s ‘pay or okay’ business model.

The idea is that users who wish not to be tracked on Facebook or Instagram will have to pay a monthly subscription fee. If they are unable or unwilling to pay this fee, they automatically agree to be tracked and have their personal data used for targeted ads.

In July 2024, the Commission announced it was ready to charge Meta over its ‘pay or okay’ business model. The DMA requires so-called gatekeepers or Very Large Online Platforms (VLOPs) to seek permission from users to combine their personal data across platforms and services. If users refuse, they still should be able to use their accounts, only with a less personalized experience.

The European Commission is not only going to impose a fine, but will also demand that Meta will adapt its business model.

Numerous sources have told the Financial Times the fines will be well below the threshold to prevent further escalation of tensions with President Trump. He expressed his concerns by suggesting that the DMA primarily targets tech companies from the United States.

“These severe fines appear to have two goals: to compel businesses to follow European standards worldwide and as a European tax on American companies,” a committee of the House of Representatives told Brussels.

According to the Financial Times, the plans for imposing a fine on Apple and Meta will be submitted to all 27 EU member states on Friday. The fines will allegedly be formally announced a week later.