Apple & Meta might face fines for alleged EU DMA violations

Apple and Meta platforms are expected to receive modest fines for allegedly violating the European Union's Digital Markets Act (DMA), according to reports. 

The European Commission has been investigating both companies since last year for potential breaches of the DMA, which was introduced in May 2023 to limit the dominance of large tech firms. Under the law, non-compliance can result in fines of up to 10% of a company’s global annual revenue.

The DMA aims to create a fairer digital marketplace by making it easier for users to switch between competing online services, such as social media platforms, web browsers, and app stores. It is intended to help smaller businesses compete with industry giants.

According to the report, the Commission's primary focus is ensuring compliance rather than imposing heavy penalties. The relatively short duration of the alleged violations, given that the DMA only took effect in 2023, and broader geopolitical considerations also factor into the decision to impose lower fines.

Last month, U.S. President Donald Trump warned of potential tariffs against countries penalising American companies. The EU, however, has denied targeting U.S. tech firms.

A final decision on the fines has not yet been made and could still change. In a compliance report last week, Meta stated that despite its efforts to adhere to EU regulations, it continues to receive demands from regulators that go beyond the law’s requirements.

Apple, in its DMA compliance report, reiterated its concerns that the law’s requirements increase security risks for users and developers, potentially exposing them to malware, fraud, and scams.