Apple is expected to pay EUR 500 million and Meta EUR 200 million in breach of the EU Digital Markets Act (DMA) — informs Reuters. These are the first penalties imposed by the European Commission under this act. Both companies have 2 months to comply, otherwise they can be charged regular penalties.
Criticism of decisions by companies
Apple announced an appeal against the decision. In a message sent to the media, the company stated that the Commission was unfairly attacking it, undermining the safety and privacy of users and forcing it to make its own technologies available for free.
Meta besides questioned the legitimacy of the penalty. In its comments, the company stated that the European Commission’s decision favours European and Chinese competitors and that the order to change the business model de facto means a multi-billion-dollar ‘tax’ and a deterioration in the quality of services.
Infringements related to App store and subscription model
In the case of Apple, the European Commission has identified method and commercial constraints that hinder developers from directing users to cheaper offers outside the App Store. The EC found this to be contrary to DMA requirements.
Meta, on the another hand, introduced in November 2023 a "pay or consent" model, in which Facebook and Instagram users can choose between free access financed from advertisements (in exchange for approval to follow) and a paid version without advertising. The EC has assessed that this model violates fresh regulations. The Meta is presently in discussions with the Commission on the modified version of the service.
Other decisions and further actions
In a separate investigation concerning the option of browsers on Apple iPhones, penalties were avoided – the changes implemented by the company were considered to be in line with DMA. However, the Commission continues to accuse Apple of obstructing alleged sideloading by introducing charges specified as Core Technology Fee, which, according to regulators, discourages developers from utilizing alternate application distribution channels.
The Commission, on the another hand, abandoned the marketplace Meta platform as a ‘gatekeeper’ as the number of users fell below the legal threshold.
Competition Commissioner Teresa Riber stressed that the Commission's actions were balanced and based on clear principles. On the another hand, MEP Andreas Schwab called for further proceedings against X Elona Muska and the advertising section of Google, pointing out that any trade policy decisions could jeopardise the coherence of European competition policy.
