US-EU trade war game! The European Union imposes a fine of 700 million euros on Apple and Meta based on the DMA
The European Commission imposed fines of €500 million on Apple and €200 million on Meta, accusing both companies of violating the Digital Markets Act (DMA). This move could exacerbate trade tensions between the US and Europe, especially as both sides negotiate to avoid additional tariffs imposed by the US on the EU. If the two companies do not rectify the situation within 60 days, they will face higher fines. The EU also terminated certain investigations into Apple and is reassessing Meta's service eligibility
According to the Zhitong Finance APP, the European Commission recently imposed a fine of 500 million euros on tech giant Apple (AAPL.US) and issued a 200 million euro fine to Meta (META.US), accusing both companies of violating the EU Digital Markets Act (DMA). This move could escalate trade tensions with the Trump administration. The penalties come at a time when the US and EU are negotiating to avoid a comprehensive tariff increase by the US on the EU, which may further exacerbate the already fragile US-EU relationship.
EU regulators pointed out that Apple violated the obligations related to anti-steering in the DMA, while Meta failed to comply with the obligation to allow consumers to choose services that use less personal data. The European Commission warned that if the two companies do not rectify their compliance within 60 days, they will face "periodic fines," and the penalty amounts may increase further.
Teresa Ribera, Executive Vice President responsible for clean, fair, and competitive transformation, stated: "Apple and Meta have reinforced the dependence of business users and consumers on their platforms by implementing certain measures, failing to comply with the provisions of the DMA. Therefore, we have taken firm and moderate enforcement actions against these two companies based on clear and predictable rules."
Additionally, the European Commission decided to terminate its investigation into Apple's obligations regarding user choice under the DMA.
Regulators indicated that they have informed Apple of their preliminary opinion that Apple's contractual terms regarding alternative application distribution violate the DMA.
The European Commission also found that Meta's online intermediary service, Facebook Marketplace, should no longer be classified as subject to the DMA.
It is understood that in September 2023, the European Commission designated six "gatekeeper" companies under the DMA for the first time—Google (GOOGL.US), Amazon (AMZN.US), Apple, Meta, Microsoft (MSFT.US), and Chinese tech giant ByteDance. Certain products offered by these companies are regulated by the DMA and the EU Digital Services Act (DSA). The DSA regulates online intermediary platforms used daily by millions of people in Europe, aiming to protect consumers and their rights in cyberspace.
In November 2024, reports indicated that Apple would face the first-ever fine under the EU DMA targeting large tech companies. However, the iPhone manufacturer has been striving to comply with the relevant provisions of the DMA. In March of last year, the European Commission launched an investigation into potential violations of the DMA by Apple, Google, and Meta.
Reports indicate that in January of this year, the European Commission was reassessing its investigations into companies including Apple, Meta, and Google
