Apple Inc. and Meta Platforms Inc. received a reprieve of sorts when the European Commission decided this week not to impose hefty fines announced two months ago under landmark legislation created to rein in Big Tech.
In late April, EU regulators slapped Apple with a fine of 500 million euros ($570 million) and docked Meta Platforms Inc. 200 million euros ($230.4 million) if they did not comply with the Digital Markets Act (2023) by Thursday.
The EU ruled Apple prevented developers from directing users to alternative offers outside of its platform, a practice known as anti-steering, on its App Store practices. But reports out of Europe indicate the iPhone maker is preparing to offer concessions aimed at delaying penalties while the EU reviews its changes. If the EU watchdog finds that Apple remains non-compliant, penalties could be up to 5% of the company’s average daily global revenue.
Meta faced scrutiny over its “pay or consent” model, which forces members to either consent to the use of their personal data for targeted advertising or pay an ad-free subscription. Meta came up with a revised version of its personalized advertising model in November 2024 that uses less personal data. The commission is evaluating the new system.
An EU spokesperson told Euronews that financial penalties will not be applied automatically but only after the Commission conducts a preliminary analysis and shares its findings with Apple and Meta.
The last-minute negotiations coincide with President Donald Trump’s expected attendance at the NATO summit in The Hague, Netherlands, this week. Among several technology issues, digital regulation is a key point of contention in the EU’s relations with the U.S. Trump previously criticized EU tech fines as “overseas extortion.”
Big Tech has increasingly been entrapped in an escalating trade war between the U.S. and the EU since March. Commission President Ursula von der Leyen has threatened to impose a tax on digital advertising revenues in response to U.S. tariffs. At the same time, a report by the US Trade Representative, published in April, labeled EU digital regulations as a barrier to U.S. exports.
Under former EU Competition Commissioner Margrethe Vestager, tech giants were subject to substantial penalties. The DMA is designed to prevent dominant digital platforms from abusing their market dominance.
