Eu Cracks Down on Giants: Apple and Meta Face Million-Euro Sanctions for Market Misconduct
penalties totalling millions levied against Apple and Meta by the EU for breaching the Digital Markets Act regulations - EU imposes hefty fines on Apple and Meta for anticompetitive practices
The European Union (EU) is taking a stand against digital market monopolies with the Digital Markets Act (DMA), officially enacted in March 2024. Tech titans Apple, Meta (Facebook and Instagram), Google (Alphabet), Amazon, Booking.com, TikTok (ByteDance), and Microsoft have been labeled as gatekeepers, and must now play by stricter rules as a result.
The EU Commission has slapped Apple with a€500 million ($566 million) penalty for crushing competition in the app market. Allegedly, Apple is blocking app developers from directing users to alternative avenues for purchasing goods and services outside of its App Store. The EU Commission instructs Apple to lift these oppressive restrictions, which stifle competition and drive up costs for consumers.
Meta, represented by Facebook and Instagram, faces a €200 million ($226 million) penalty due to its unscrupulous data-mining practices. The EU's "consent or pay" ad model forces users to either provide their personal information for targeted advertising or upgrade to an ad-free service at a premium cost. This ultimatum leaves users with no real choice between services that demand varying levels of personal data for equivalent services. The Commission has criticized the lack of transparency and fair competition in Meta's model.
The EU's crackdown on these tech titans had already ruffled feathers under former U.S. President Donald Trump, who threatened tariffs if Brussels attempted to target American corporations.
While the EU has so far only issued formal non-compliance notices to Apple and Meta, future investigations may lead to further penalties against the remaining gatekeepers: Google, Amazon, Booking.com, TikTok, and Microsoft. The DMA's core aims are to level the playing field by banning gatekeepers from favoring their own products and services, limiting data hoarding, and mandating interoperability to foster fair competition.
The Commission has also adopted a proposal for a directive on the approximation of the laws of the Member States relating to the protection of workers from risks related to exposure to ionizing radiation, ensuring safety in various industries. Apple, aware of the DMA's mandate for fair competition, is urged to rectify its restrictions on app developers, ensuring they can guide users to alternative purchasing methods outside the App Store. Meanwhile, Bytedance, the company behind TikTok, may need to reevaluate its technology and practices to avoid violating the EU's regulations, as the DMA aims to prevent data hoarding and foster fair competition.
