Apple, Meta to face charges for not complying with EU DMA

European DMA: Apple and Meta Platforms are expected to face charges for failing to comply with EU regulations aimed at curbing their market dominance, according to three sources with direct knowledge of the matter. 

The European Commission, which initiated investigations into these companies and Alphabet Google in March under the Digital Markets Act (DMA), has prioritised Apple and Meta, the sources revealed on Friday.

The DMA mandates that Big Tech firms create opportunities for smaller competitors and facilitate easier user transitions between different online services, such as social media platforms, internet browsers, and app stores.

EU regulators are set to issue preliminary findings, akin to antitrust charges, before the summer break in August. Apple will be the first to be charged, followed by Meta, according to the sources.

Both the Commission and Meta declined to comment, while Apple referred to its March statement asserting that it is confident in its compliance with the DMA and remains engaged with the Commission constructively.

May need to pay 10% of annual turnover in fines

Companies can propose remedies to address the concerns outlined in these findings before a final decision, expected before EU antitrust chief Margrethe Vestager's term ends in November. Potential penalties for breaches could include fines of up to 10 per cent of a company's global annual turnover.

The EU investigation is focusing on Apple's steering rules, which allegedly restrict app developers from informing users about external offers free of charge, and its new fees imposed on app developers. Apple is expected to be charged concerning these issues, with a secondary investigation into its Safari web browser's choice screen taking longer to conclude.

Meta's preliminary findings relate to its recently implemented pay-or-consent model, which requires users to pay a subscription fee for an ad-free experience on Facebook and Instagram, the sources said.

(With Reuters inputs)