The European Commission has taken a significant step in enforcing the Digital Markets Act (DMA), issuing fines and corrective orders against Apple and Meta.
These are the first penalties to be imposed under the DMA, a regulatory framework designed to curb the monopolistic practices of dominant tech companies in the European Union’s digital economy.
The European Commission’s enforcement decisions, issued to Political Uprise News by Thomas Regnier, Commission Spokesperson, emphasize the Commission’s dedication to fostering fair competition, enhancing user choice, and ensuring greater transparency in the digital marketplace.
Apple has been found in violation of Article 5(4) of the DMA, which prohibits gatekeepers from restricting developers’ ability to communicate with their customers and promote alternatives to their own services. The Commission determined that Apple’s App Store policies prevented developers from freely providing pricing information within apps or advertising offers from other distribution channels.
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The Commission’s ruling also pointed to Apple’s excessive fee structure, which goes beyond mere compensation for customer acquisition. Apple was found to charge developers a recurrent fee for purchases made within seven days of a user clicking through a link to an external site.
The Commission believes this practice is beyond the scope of reasonable remuneration and constitutes an unfair hindrance to developers.
In response to the findings, the European Commission has issued a cease-and-desist order for Apple, mandating that the company adjust its policies and practices to comply with the DMA. The company has been given 60 days to implement these changes, or risk facing additional periodic penalty payments.
Meta’s advertising practices on Facebook and Instagram have also been scrutinized under the DMA, particularly the company’s controversial “Consent or Pay” model. This model presents users with two choices: either accept personalized ads based on their personal data or pay to use the platform without ads.
The European Commission determined that this binary choice violated Article 5(2) of the DMA, which requires gatekeepers to offer users a “real, less personalized but equivalent alternative” to data-heavy, personalized services. Meta’s model, the Commission argued, does not allow users to opt for a less personalized version of the service while still retaining equivalency with the core experience.
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Furthermore, the “Consent or Pay” model was found to be incompatible with user rights to freely consent to the combination of their personal data. As a result, Meta has been instructed to revise its advertising approach to provide a more transparent, personalized experience in compliance with the DMA.
Similar to Apple, Meta has been given 60 days to comply with the Commission’s ruling, with the threat of penalty payments looming for non-compliance.
When asked about the methodology behind the calculation of the fines, the European Commission explained that penalties under the DMA are based on the gravity, duration, and recurrence of the infringement, without requiring an assessment of the harm caused in terms of market damage or user choice. In this case, the penalties reflect the severity of the violations and the need for swift corrective action.
These fines are part of the Commission’s ongoing efforts to regulate tech giants in the digital age. The actions against Apple and Meta are significant because they mark the first non-compliance decisions under the DMA, which aims to ensure that dominant digital platforms operate fairly and transparently.
The Commission emphasized that both Apple and Meta have been provided with clear guiding principles for compliance. However, it remains the responsibility of these companies to design and implement solutions that meet the DMA’s requirements. The European Commission will continue to engage with both firms to ensure that they follow through with the necessary changes.
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In response to Political Uprise News’ inquiry about potential technical compliance benchmarks or key performance indicators (KPIs), the Commission made it clear that there are no pre-defined standards. Instead, the Commission will assess the effectiveness of the companies’ compliance measures on a case-by-case basis, depending on the specifics of the changes they propose.
Regarding the issue of backend algorithmic transparency and whether the Commission has requested audit logs from Apple and Meta, the Commission stated that it cannot comment on ongoing investigatory actions. While the specifics of the investigation remain undisclosed, it is clear that the Commission is closely monitoring the companies’ practices and is prepared to take further action if necessary.
Both Apple and Meta have been given until June 25, 2025, to comply with the Commission’s orders. If they fail to meet the new requirements, they could face additional penalties, including substantial daily fines. The European Commission is also expected to continue its work with other gatekeepers to ensure the broad application of the Digital Markets Act.
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These decisions are seen as a watershed moment for the enforcement of the DMA, which is part of the EU’s broader effort to regulate the digital economy and curb the dominance of major tech companies. With the fines and orders against Apple and Meta, the European Commission has made it clear that non-compliance will not be tolerated.
The European Union’s decision to impose such stringent penalties on Apple and Meta highlights its determination to reshape the digital landscape. The DMA’s broader goal is to create a more competitive and transparent digital market that benefits consumers and allows smaller businesses to thrive without being overshadowed by dominant gatekeepers.
As the DMA enforcement continues to unfold, the tech industry will likely see an increase in scrutiny and regulatory action, signaling a shift toward greater accountability in the digital sector. The outcomes of these investigations will serve as a precedent for how the European Commission will address future cases of non-compliance in the rapidly evolving digital marketplace.
