Potential penalties emerge as Brussels investigates compliance with new digital market regulations.
The European Commission is reportedly preparing to impose fines on major technology companies Apple and Meta for violations of the Digital Markets Act (DMA).
This action would represent the first significant penalties against large tech firms since Teresa Ribera assumed her role as Vice President of the European Executive and head of the Competition portfolio.
The anticipated fines are emerging amid an ongoing commercial conflict that began during
Donald Trump’s presidency, characterized by substantial tariffs affecting various sectors and nations worldwide.
More than a year ago, the Commission launched an investigation into four major American tech firms—Apple, Alphabet, Amazon, and Meta—for non-compliance with the DMA.
These companies, designated as 'gatekeepers' due to their significant market size and potential competitive risks, face greater obligations than other companies.
Investigations were initiated following indications that some of these requirements were not being met.
Findings from these probes have progressed over the months, and preliminary conclusions suggest that fines may soon be forthcoming.
The fines considered by Brussels are expected to be lower than the maximum stipulated by the regulations, which can reach 10% of a company's global turnover.
According to knowledgeable sources, this is partly due to the relatively short duration of the alleged violations, approximately one year.
The DMA has been phased in from 2023 to 2024. The highest penalty previously imposed by the European Competition watchdog was against Google in July 2018, amounting to 4.34 billion euros for market abuse, which was determined to have occurred over a period starting in 2011. Legal experts note that Brussels typically prefers to settle on fines that approximate 3% of global turnover rather than applying the maximum limits.
Ribera was in Washington the previous week for a major annual competition event, where she met with U.S. competition authorities, including Gail Slater, the head of the Antitrust Division at the Department of Justice, and Andrew Ferguson, the chair of the Federal Trade Commission.
This engagement marked the first interaction between the new administrations from both parties, primarily aimed at reaffirming the ongoing collaboration established over the past decade.
Brussels has consistently emphasized that the enforcement of its digital regulations, including both the DMA and the Digital Services Act (DSA), and associated fines are independent of the trade disputes and geopolitical tensions between Washington and Brussels, which have intensified since Trump's return to office.
As an illustration of this stance, on March 19, the Commission mandated Apple to open its iPhone digital ecosystem to third-party applications, an action perceived as potentially more disruptive than the imposition of a fine, as it necessitates a fundamental shift in the company's business model.
Concerns among major tech companies often center more on regulatory demands for changes in business models than on the fines themselves.
These corporations generate substantial revenues, with market valuations that, in some instances, exceed the GDP of entire nations.
For instance, Apple's market valuation is nearly double that of Spain's GDP. As a result, such companies may prioritize regulatory changes over monetary penalties, particularly if Brussels determines that current practices pose risks of market abuse.
Meta, the parent company of
Facebook, has articulated concerns regarding the pending decisions by the Commission, stating, "This is not just about fines; the Commission seeks to hinder successful American companies simply for being successful, while allowing their Chinese and European rivals to operate freely." This statement reflects a political dimension, diverging from typical corporate positions.
Earlier in the year, Meta CEO
Mark Zuckerberg indicated that his company would no longer moderate content on its social media platforms (
Facebook and Instagram) and criticized European digital regulations, although his criticisms were more directed toward the DSA than the DMA, with the former focusing more on content regulations.
Zuckerberg's views resonate with those expressed by U.S. Vice President J.D. Vance during his visit to Europe in February, where he criticized what he perceives as excessive regulation of tech companies.
The regulatory frameworks in Europe and the United States remain distinctly different; American regulations emphasize entrepreneurial freedom and free speech over other fundamental rights, while European regulations seek to maintain a balance among fundamental rights, consumer welfare, and free market economy, as articulated by a noted digital regulation expert from Columbia University.
Vance's statements occurred in the context of broader concerns expressed by the Trump Administration regarding international pressures on U.S. tech companies.
He cautioned that the U.S. would not tolerate foreign governments tightening controls on American tech firms operating globally.