In a significant development, Apple and Meta Platforms are expected to face charges from the European Union (EU) for allegedly failing to comply with the new Digital Markets Act (DMA). According to sources with direct knowledge of the matter, the European Commission aims to issue these charges before the summer break in August.
The EU’s investigations into Apple, Meta, and Alphabet’s Google began in March under the DMA, which seeks to curb the power of Big Tech by creating fairer competition for smaller rivals and making it easier for users to switch between different online services.
The European Commission views Apple and Meta as priority cases. Sources indicate that preliminary findings, which are akin to antitrust charges, will be released soon, with Apple likely to be charged first, followed by Meta. While the Commission and Meta declined to comment on the matter, Apple referred to a previous statement made in March, expressing confidence in its compliance with the DMA and its ongoing engagement with the Commission.
Under the DMA, companies found in violation could face fines of up to 10% of their global annual turnover. These preliminary findings provide the companies with an opportunity to propose remedies to address the concerns before a final decision is reached. This decision is expected before EU antitrust chief Margrethe Vestager leaves office in November.
The focus of the EU’s investigation into Apple includes the company’s steering rules, which are said to restrict app developers from informing users about offers outside the Apple App Store without charge, and the new fees imposed on app developers. Another investigation concerning Apple’s choice screen for its Safari web browser is expected to take longer.
Meta, on the other hand, faces scrutiny over its recent “pay or consent” model, which requires users to pay a subscription fee for an ad-free experience on Facebook and Instagram. This model, according to sources, is the primary focus of the preliminary findings against Meta.
The Financial Times first reported the imminent EU charges against Apple. As the tech giants brace for these regulatory challenges, the potential outcomes could significantly impact their business operations and market strategies within the EU.
This move by the European Commission underscores a growing global effort to regulate Big Tech and ensure a more competitive and fair digital marketplace.