EU Fines Apple and Meta for Violating Digital Markets Act
The European Commission has imposed significant penalties on tech giants Apple and Meta, with fines amounting to €500 million and €200 million, respectively. These sanctions stem from serious violations of the Digital Markets Act (DMA), with Apple found guilty of breaching anti-steering obligations, while Meta is criticized for inadequately managing user data preferences.
Apple’s Restrictions on App Developers
In its investigation, the Commission highlighted that Apple’s practices prevent app developers from realizing the full potential of alternative app stores. Apple enforces limitations that prohibit developers from directly informing consumers about cheaper alternatives, thus contravening DMA regulations. The Commission concluded that Apple has not provided sufficient justification for maintaining these restrictions.
Meta’s Compliance Issues
On the other hand, Meta’s approach to user options was scrutinized, particularly the restrictive binary choice presented to users: either receive personalized advertisements or pay a subscription fee to circumvent ads. The Commission has urged Meta to implement an additional ad-supported option with reduced personalization, akin to options available on various other platforms.
Reprieve for Meta’s Facebook Marketplace
Notably, despite the fines, Meta received some relief from the European Commission. The Commission announced that Meta’s Facebook Marketplace will no longer fall under DMA scrutiny due to a decrease in its business user base. In a statement, the Commission noted:
“Following a careful assessment of Meta’s arguments and as a result of Meta’s additional enforcement and continued monitoring measures to counteract the business-to-consumer use of Marketplace, the Commission found that Marketplace had less than 10, 000 business users in 2024. Meta therefore no longer meets the relevant threshold giving rise to a presumption that Marketplace is an important gateway for business users to reach end users.”
Ongoing Efforts Against Big Tech
This decisive action against major technology companies is part of the European Union’s broader strategy to enforce stricter regulations within the digital marketplace. Recent reports indicate that the EU is steadfast in its commitment to these initiatives, despite potential backlash from prominent figures such as U. S.President Trump, who has hinted at imposing tariffs.
For further details, you can visit the European Commission website or read more through this source.
Leave a Reply