In April, both Apple and Meta were hit by fines in the EU for failing to meet the region’s DMA obligations. Apple was fined €500 million, while Meta was hit with a €200 million fine. Both companies were also given 60 days to comply, and that clock runs out on June 26. However, the EU has confirmed that Apple and Meta won’t be hit with immediate sanctions once the deadline ends.
No immediate sanctions for Apple and Meta
Usually, if neither Apple nor Meta had complied with the DMA obligations once the deadline ended, they would be hit with financial penalties. However, the EU says the sanctions against Apple and Meta will not be immediately resolved. Instead, the Commission will conduct a preliminary analysis before making any decisions.
Under the DMA, the EU can impose periodic penalties of up to 5% of a company’s average daily global turnover for each day it fails to comply. That being said, there’s a chance neither Apple nor Meta will be fined. Both companies say they have made the necessary changes to comply.
In Apple’s case, the company has revised the terms of the App Store. It now allows developers to direct users to outside payment systems with new fees. Meta has also made changes to its subscription plan. Now, users who refuse personalized ads are still tracked, albeit with “less personal data.”
Of course, the EU still needs to decide if these changes align with its goals. Apple has famously attempted to do the bare minimum regarding regulations in the past. It does enough to claim that it has made changes, but sometimes, this runs afoul of regulators who feel it isn’t enough.
What is the DMA?
For those unfamiliar, the EU’s DMA, also known as the Digital Markets Act, is legislation designed to regulate tech companies and ensure fair competition in the region. It mainly targets companies that it deems as “gatekeepers.” These are large companies that offer a core service.
In Apple’s case, it would be its App Store. Before this, Apple’s App Store was the only place users could buy and download iOS apps. However, after changes in regulations, Apple was forced to allow third-party app stores. In Meta’s case, the company’s products and services, like Facebook and WhatsApp, are deemed as core services.
Under the DMA, Meta must ask users for explicit consent when combining data across its services.
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