Thought Leadership
Brussels is once again clamping down on US tech companies and imposing fines on Apple and Facebook parent company Meta. But the last word has not yet been spoken.
The EU Commission has imposed fines of 500 million and 200 million euros on the US tech companies Apple and Meta. According to the authority, the companies have violated European digital law. The penalties can still be challenged in court.
Apple has already announced that it will legally challenge the fine. Specifically, according to the Commission, the US companies are alleged to have violated the Digital Markets Act (DMA). The regulation is intended to ensure, for example, that a dominant market position does not put other providers at a disadvantage. This is the first time that the Commission has imposed penalties under the DMA.
Apple speaks of unfair practices
Apple believes that the Commission’s approach is unfair. It is being forced to give away technology for free. “We have invested hundreds of thousands of development hours and made dozens of changes to comply with this law,” Apple said. Despite countless meetings, the Commission keeps postponing targets.
The penalties could have an impact on the current tensions between the US and the EU. The Republican Chairman of the US Federal Trade Commission (FTC), Andrew Ferguson, recently said at an event that it looks as if the Digital Markets Act (DMA) is a form of taxation on American companies. The EU Commission has repeatedly imposed high penalties on US tech companies in recent years.
However, the Brussels authority always emphasizes that proceedings against American tech companies are not related to the current tensions with Washington over the customs dispute. At the end of last week, EU Commission President Ursula von der Leyen brought into play levies on advertising revenue for large online platforms independently of the proceedings.
Commission: Apple restricts app developers too much
According to the EU Commission, the proceedings are about Apple preventing app developers from making offers available to consumers outside of the app store. Users cannot fully benefit from alternative and cheaper offers as the company prevents developers from informing them directly about such offers.
According to the Commission, Meta’s fine is due to its so-called pay-or-consent model. The Brussels authority had already announced last July that it was of the opinion that this was not compatible with EU law.
Meta introduced new options
The focus is on the fact that users of Facebook and Instagram have to choose between a monthly fee for an ad-free version and a free version with personalized advertising. There is not enough opportunity for users to choose a service that uses less personal data.
According to the Commission, Meta introduced a different version of the free personalized advertising model in November 2024. There is a new option in which less personal data is to be used. “The Commission is currently examining this new option.” The fine relates to the period of the alleged infringement between March 2024 and November 2024.
Higher penalties would have been possible
Those who do not comply with the DMA must expect drastic sanctions. The legal text provides for the possibility of imposing penalties of up to ten percent of annual global turnover. For repeat offenders, this rate can rise to 20 percent.
Last year, Apple reported a turnover of just under 400 billion US dollars (around 370 billion euros). According to company information, Meta’s value is around 165 billion US dollars.
dpa
