As the first major enforcement deadline approaches under the EU’s new Digital Markets Act (DMA), the European Commission is signaling a more temperate approach towards two of the most scrutinized targets: Apple and Meta. Here’s the significance of today’s developments.
60-day grace period concluding on June 26
In April, the two firms were penalized (€500 million for Apple and €200 million for Meta) for not adhering to their DMA requirements and were allotted 60 days to begin compliance. This period comes to an end on June 26. However, an EU spokesperson confirmed to Euronews that no new financial repercussions will automatically occur at the end of this period.
Any further penalties will follow a comprehensive review of each company’s current practices, providing them an opportunity to respond. The spokesperson characterized this as part of a continuous dialogue between regulators and major tech companies.
Details of the April fines
Apple’s fine was primarily related to its App Store regulations, which hindered developers from guiding users to alternative purchasing options outside of Apple’s ecosystem. The Commission argues this goes against the DMA’s objective of enhancing competition and user choice.
Meta, on the other hand, was penalized for its contentious “pay or consent” model, which compels users to either agree to personalized ad tracking or pay a monthly fee to opt out. Meta has since introduced a revised version of this system, asserting that it now depends on less personal data. The Commission is still assessing its compliance with the law.
While these fines marked the EU’s inaugural enforcement actions under the DMA, they were relatively modest compared to prior antitrust cases. Previously, under Margrethe Vestager’s leadership, major tech firms often faced fines in the billion-euro range.
EU officials explained back in April that these reduced amounts reflected the brief nature of the infractions (given that the DMA only took effect in 2023) and the Commission’s pivot towards promoting compliance rather than imposing penalties.
The political context
All of this unfolds amid an increasing climate of digital trade tensions between the EU and the US.
Following new tariffs imposed by Washington on European products earlier this year, Commission President Ursula von der Leyen proposed potential countermeasures, including a new tax on digital advertising revenues.
Meanwhile, the US Trade Representative has characterized the DMA and other EU tech regulations as unfair barriers to American enterprises.
Whether today’s developments directly respond to these tensions remains uncertain. Nonetheless, it appears that Apple and Meta have gained a bit more leeway.
