Apple and Meta Platforms are set to receive fines from the European Commission for allegedly violating the European Union’s landmark Digital Markets Act (DMA), according to sources familiar with the matter. While the act allows regulators to impose hefty penalties of up to 10% of a company’s global annual revenue, the fines being considered in this case are expected to be relatively modest. The primary reasons behind the lighter penalties include the short duration of the alleged violations, the Commission’s emphasis on ensuring compliance rather than punishment, and the broader geopolitical climate that has made regulators cautious about imposing severe fines on major U.S. tech companies.
The European Commission has been investigating Apple and Meta since last year over potential breaches of the DMA, which came into effect in May 2023. The law was designed to curb the dominance of major tech firms, known as "gatekeepers," and create a fairer competitive environment for smaller companies. It requires these dominant platforms to allow greater interoperability between their services and those of competitors. This means that consumers should be able to switch more easily between different online services, such as social media platforms, web browsers, and app stores, without being locked into one ecosystem controlled by a single company. The DMA also aims to prevent gatekeepers from giving preferential treatment to their own services over those of rivals.
Regulators are particularly focused on ensuring that Apple and Meta comply with the law moving forward, rather than simply punishing them for past infractions. According to sources, the Commission sees compliance as a priority and believes that meaningful enforcement will be more effective in the long term than issuing large financial penalties at this stage. Another major factor influencing the decision is the geopolitical tension between the European Union and the United States. The U.S. government, particularly under former President Donald Trump, has expressed concerns about the EU's regulatory approach toward American tech giants. Trump even threatened to impose tariffs on countries that levy fines against U.S. companies, creating additional pressure on European regulators to tread carefully.
Despite these concerns, EU officials have consistently denied that their enforcement of the DMA is biased against American firms. The European Commission has maintained that its goal is to ensure a level playing field in the digital market, regardless of a company’s country of origin. While the fines for Apple and Meta are expected to be relatively small compared to the companies' massive revenues, they serve as a warning that regulators are monitoring compliance closely and could impose harsher penalties in the future if violations persist.
A final decision on the fines is expected to be announced later this month, aligning with statements made by EU antitrust chief Teresa Ribera in February. The European Commission has declined to comment publicly on the specifics of the investigation or the expected penalties.
Meanwhile, both Apple and Meta have pushed back against the allegations, arguing that they are making good-faith efforts to comply with the DMA. In its latest compliance report, Meta stated that it has been working diligently to align with EU regulations but continues to receive regulatory demands that, in its view, go beyond the scope of the law. Meta has been under scrutiny for how it handles data portability and whether it provides equal access to its platforms for competing services.
Apple, in its March 7 compliance report, reiterated its concerns about the risks posed by the DMA’s requirements. The company argues that opening its tightly controlled ecosystem to third-party services could expose users and developers to new security threats, including malware, fraud, and scams. Apple has historically maintained a closed ecosystem, particularly with its App Store, which has been a major point of contention in regulatory discussions. Under the DMA, Apple is required to allow alternative app stores and enable users to sideload apps, a move the company has long resisted on security grounds.
This latest development highlights the growing regulatory pressure on Big Tech firms in Europe. While Apple and Meta may be facing only modest fines for now, the European Commission has made it clear that it is serious about enforcing the DMA. If companies continue to violate the law or fail to fully comply with its requirements, they could face far more significant penalties in the future, including fines that reach billions of dollars. Moreover, repeated non-compliance could result in additional enforcement actions, such as mandatory structural changes to their business operations within the EU.
In the broader context, the European Union’s aggressive regulatory stance against Big Tech is part of a global trend. Governments and regulatory bodies around the world are increasingly scrutinizing the power of dominant technology companies, implementing stricter laws and policies to ensure fair competition. The DMA is just one piece of the puzzle, alongside other EU regulations such as the General Data Protection Regulation (GDPR) and the proposed Artificial Intelligence Act. The EU’s approach could set a precedent for other regions looking to regulate digital markets, potentially influencing how technology giants operate worldwide.
While Apple and Meta may avoid severe financial penalties for now, this case underscores the shifting regulatory landscape and the mounting challenges that major tech firms face in navigating compliance with new laws. The European Commission’s actions signal that companies must take regulatory requirements seriously and adapt their business practices accordingly, or risk facing more severe consequences in the future.
