European Commission (EC) slapped Apple with a $570 million and Meta with a $230 million fine under its Digital Markets Act (DMA) on Wednesday. The European Union’s regulator said the tech giants are the first two companies to be penalised for violating the law intended to promote competition in the digital economy.
EU Slaps Apple with $570 Mn Fine, Meta with $230 Mn for DMA Violations
Meta’s chief global affairs officer, Joel Kaplan, reportedly said the tech giant will appeal against the commission’s decision, as product changes suggested by it would result in giving away its technology
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The EU introduced the DMA law in 2022 to restrict big tech companies from abusing their dominance as digital “gatekeepers” and unilaterally impose conditions on consumers and businesses.
Apple & Meta’s Crime under DMA
The iPhone maker imposed certain conditions, including ways in which app developers could communicate with users about sales and other offers, which violated the EC’s DMA law. A cease-and-desist order has also been issued against Apple for product changes by June, with additional fines likely to be imposed if the tech giant fails to comply.
Mark Zuckerberg’s Meta, on the other hand, breached the law by imposing a “consent or pay” condition, which forced its users to either allow their personal information to be used to target advertisements or pay a subscription fee for advertising-free use of its social media platforms like Facebook and Instagram.
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Besides this, the commission is presently reviewing the changes in compliance with the DMA law that it had earlier asked Facebook’s parent company to make. The EU’s regulator has also asked the two tech companies to change their behavior to ensure free choice for users.
Meta’s Reaction
Commenting on the development, Meta’s chief global affairs officer, Joel Kaplan, said the tech giant will appeal against the commission’s decision as product changes suggested by it would result in giving away its technology.
“The European Commission is attempting to handicap successful American Businesses while allowing Chinese and European companies to operate under different standards. This isn’t just about a fine; the commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service,” said Meta’s chief global affairs officer, Joel Kaplan, according to AP.
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