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Apple and Meta Platforms are under the spotlight as the European Commission prepares to impose fines for alleged violations of the Digital Markets Act (DMA). The landmark EU regulation, aimed at curbing the dominance of big tech companies, could see both firms facing penalties of up to 10% of their global annual revenues.
Although the fines are expected to be modest, the case underscores growing regulatory pressure on tech giants operating in Europe. As investigations continue, the focus remains on enforcing compliance rather than issuing heavy financial punishments.
The DMA, which came into force in May 2023, aims to curb the market dominance of major tech firms by ensuring fair competition in the digital market. The regulation facilitates seamless transitions between competing online services, such as social media platforms, app stores and web browsers. Its primary goal is to help smaller companies compete with industry giants by promoting a level playing field.
The main goal of the European Commission under the DMA is to enforce compliance instead of delivering financial punishments. According to sources who know the matter, Apple and Meta face modest penalties. The penalties will depend heavily on the time the violations persist, the DMA's brief enforcement period, and the international political situation.
The regulation came into effect less than a year ago and both Apple and Meta have argued that they are still in the process of aligning with its requirements. Companies have expressed concerns about security risks to their user base and developers due to implementing this new law because they fear more malware threats and scams. The EU antitrust authority focuses on company compliance with the law instead of enforcing strict punishments, even though Apple and others have expressed such concerns.
The regulatory scrutiny has occurred against political tension between the European Union and the United States. In a memorandum issued last month, U.S. President Donald Trump threatened to impose tariffs on countries that levy fines against American companies. The European Union denies claims about discriminatory treatment of American tech companies because its DMA enforcement aims to strengthen competition and fairness within the digital sector.
The final decision on the size of the fines is expected to be announced later this month. EU antitrust chief Teresa Ribera had previously indicated in February that a resolution was imminent. As both companies await the Commission’s decision, they continue to assert that they have made significant efforts to comply with the regulation despite the challenges posed by its provisions.
