The Digital Markets Act (DMA) was introduced as a way to curb anti-competitive practices by "gatekeeper" companies such as Google, Apple, Microsoft, Meta, and others and fine them up to 10% of their global annual revenue for failing to comply with the rules. However, a new report by Reuters suggests that Apple and Meta might face modest fines for their alleged breaches. The move also comes after U.S. President Donald Trump previously threatened tariffs against nations that impose fines on American companies.
Since last year, both Apple and Meta have been under investigation for allegedly failing to meet certain DMA obligations. Apple has long been criticized for operating a "closed ecosystem." Meta's handling of user data for advertising and its dominance in social media have also raised concerns about whether it complies with the fair competition practices that the DMA outlines.
Meta outlined its consumer profiling techniques in its DMA compliance report (PDF) published on March 6. The company said that it is using machine learning models to curate content based on user preferences while maintaining compliance with EU regulations. However, the company also states that it faces demands from regulators that exceed what is mandated by the law.
Similarly, Apple also reiterated its position (PDF) that the changes imposed by the DMA introduce new risks for users and developers, including increased avenues for fraud and malware. Apple also raised concerns about how these regulations could compromise user security and privacy, arguing that they may inadvertently create vulnerabilities.
While both companies could face "modest" fines, the final decision on the penalty amounts is still pending and is expected later this month. From the Reuters report, it looks like EU regulators are more interested in ensuring that the companies adhere to DMA rules moving forward rather than issuing punitive fines at this stage, while also being mindful of the backlash from the U.S. that have previously raised concerns, calling them as disproportionate penalties on American companies operation in Europe.
Source: Reuters
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