Every now and then, we hear about a tech company being investigated by regulatory authorities to see if they are breaching any laws that ensure healthy competition and prevent monopoly. Google and the DOJ's legal battle gained quite a lot of attention, with the company now at risk of being forced to break off Chrome as part of the remedy. Apple and Meta have also been under hot water for quite some time, as the EU is determined to ensure that no company is stifling competition or limiting consumer choice.
Now, a major development emphasizes the push by authorities to make big companies comply with the Digital Markets Act, as Apple and Meta are the first companies to be hit with a significant fine for violating the DMA.
Apple and Meta are being penalized with the first DMA antitrust fines and have 60 days to comply to avoid further fines
The European Commission had been actively pursuing Apple and Meta to account for violating digital market regulations. Its pursuit can now be seen as a major development in the legal antitrust case that has taken shape. Apple and Meta would now be the first companies to be fined under the European Union's new Digital Markets Act (DMA).
The European Commission announced today that it would be levying fines on Apple of €500 million (around $570 million). The penalization faced by the tech giant is for restricting app developers from offering other alternative payment options outside the App Store, which stands to be a clear violation of the antitrust laws and a breach of fair competition laws. Meta, on the other hand, is facing fines of up to €200 million (around $230 million) for its controversial pay or consent model when it comes to Facebook and Instagram, which leaves users with limited free choice and is again a clear violation of the fairness principles given out in the DMA.
Both companies are given a period of 60 days to comply with the EU's decision, and failure to do so would mean additional fines. Apple would additionally be required to lift its restrictions for developers and let them inform users about alternative payment options. According to the New York Times, Meta plans to challenge the decision and justify its pay or consent model for Instagram and Facebook. Apple has also confirmed that it will appeal the ruling because it believes its App Store policies are fair and not in violation of the law.
It seems like this legal battle will be prolonged and could have major implications for how tech companies operate in Europe. Given the approaching time, it could add a political layer and intensify the growing friction between the EU and the US government.
