It has not been 3 days since Ursula von der Leyen, quoted by Politico, stated that the EU is ready to full enforce all the government on digital markets and services "regardless of where the company comes from and who directs it", and the European Commission has announced penalties for 2 powerful American large Techs – Apple and Meta (the owner of Facebook).
Apple will pay for the restrictions
The punishment for Apple was imposed for violating the rules on app stores. According to the Digital Markets Act, the app developers available in the App store “should be able to inform customers free of charge about alternate offers outside the App Store, directing them to these offers and enabling them to make purchases”, the Commission’s explanatory memorandum states.
According to the EC, in the course of the dialog between Apple and the EU institutions, the company did not show that the restrictions resulting in the deficiency of full usage of alternate applications to AppStore distribution channels were objectively essential and proportionate.
Brussels ordered the Cupertino giant to abolish the method and commercial restrictions challenged under the DMA. Changes are due by the end of June. If Apple fails to meet the deadline, it is subject to an additional fine for each day of violation of European law.
Meta will pay for a tiny choice
In the Commission’s view, Meta has "infringed the DMA’s work to give consumers the choice of a service that uses little of their individual data".
What is it? The meta gave Facebook and Instagram users a choice: either they will usage free versions of these applications, but they will consent to combining their individual data between these services and utilizing them to display personalized ads – or they will pay for versions of applications without advertising.
However, according to DMA, owners of specified services as Meta's offer not only gotta get the consent of users to connect their data between the services, but for those users who do not agree to do so, they are obliged to offer an equivalent service. According to the committee proposed by Meta, the paid access to the application version without advertising was not specified an equivalent service.
EU: We defend users
According to Teresa Ribera, EC Vice-President for Clean, Fair and Competitive Transformation, Apple and Meta's activities increased users' dependence on platforms, and so the EU has taken "strong but balanced" action.
On the another hand, technological sovereignty Commissioner Henna Virkkunen stressed that EU citizens should, in accordance with EU law, have full control of erstwhile and how their data is utilized on the Internet. "Apple and Meta have taken this free choice from their users and are obliged to change," says Virkkunen's message on the EC pages.
Economic dispute with Washington
In the light of the penalties imposed present by the Commission – and the ongoing investigation into X, a service owned by Elon Musk, a key co-worker of Donald Trump – is criticism of the EU's acquis of digital markets and services, arriving loudly from the White House.
The current US Vice president J.D. Vance in his debut on the European political arena – at the Paris Summit of AI – warned that excessive regulation could kill the AI manufacture during its most dynamic development. Vance said that he would like to see "deregulation in many conversations during this conference." He besides expressed concern that "some abroad governments are considering tightening sanctions against US technology companies operating internationally".
His boss went even further. According to Donald Trump, the digital marketplace act is “foreign extortion” on American companies. The White home threatened to impose additional duties that in consequence to EU technological regulations.
In fresh weeks Donald Trump has imposed and then frozen for 90 days, advanced tariffs on Europe. Today, during this 90-day pause, hard trade negotiations are underway between Brussels and Washington, which can find the economical future of both immense markets – the American and European markets.
Will the EU withstand pressure?
Prolonged proceedings in the case of US large Tech penalties have led to doubts in the EU's media ether as to whether Brussels will prove unrelenting. Whether the Union wants to do so or not, the proceedings and penalties on American giants will not avoid being imprisoned in a political context.
Putting penalties on the altar for large Techs, so as not to make transatlantic relations worse and bury any possible customs agreement, would, however, show the weakness of the Union and succumb to Trump's pressure. And Brussels couldn't afford it.
Meta and Apple decisions are the first specified decisions of the EC based on the Digital Markets Act. Both companies have 60 days to comply with the Commission decision, or will pay further penalties. Brussels points out at the same time that Apple and Meta could exercise their rights of defence and verify the EC investigation and respond in writing to the allegations.
The EC ensures that it remains in dialog with Apple and Meta. The spokespersons for both companies, as quoted by Politico, announced appeals against its decision. According to Apple, KE’s action is “another example of unfair treatment”. According to Meta, the EU's ruling is actually a "multi-billion-dollar duty".
But in fact, the Commission has given reasonably mild sentences to both companies. On the basis of the DMA, the Union may impose penalties in breach of the provisions of that act up to 10% of their full yearly turnover. And the yearly turnover of Apple and Meta is hundreds of billions of dollars. Meanwhile, recall, Apple will pay half a billion euros and Meta will pay 200 million.
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