Apple and Meta will not face immediate sanctions under EU Digital Markets Act

Apple and Meta will not face immediate sanctions for failing to comply with the EU's Digital Markets Act, as authorities will first conduct a preliminary analysis and communicate with the companies before imposing further penalties.

US tech giants Apple and Meta are not set to face immediate sanctions for failing to meet obligations under the European Union’s Digital Markets Act (DMA), according to an EU spokesperson. The Commission fined Apple €500 million and Meta €200 million in April for non-compliance with the DMA, granting both companies a 60-day period to align with EU rules. The grace period ends on 26 June, after which both firms may face periodic penalty payments.

A spokesperson clarified that financial penalties will not be applied automatically. Instead, the Commission will conduct a preliminary analysis and share its findings with Apple and Meta as part of an ongoing exchange process.

Apple’s €500 million fine was issued for preventing developers from directing users to alternative offers or content outside its platform, a practice deemed contrary to DMA requirements. Meta received a €200 million fine for its "pay or consent" model, which requires users to either allow the use of their personal data for targeted advertising or pay for an ad-free subscription, limiting user choice.

In response to the concerns, Meta introduced a revised version of its personalized advertising model in November 2024, which uses less personal data. The Commission is currently evaluating the new system while ongoing discussions with Meta continue.

Compared to previous antitrust actions, the fines issued in April were relatively modest. EU officials stated that the lower amounts reflected the short duration of the violations, as the DMA only began implementation in 2023, and that the current focus is on achieving compliance rather than imposing punitive measures.

US digital services have become involved in an escalating trade dispute between the US and the EU since mid-March. In response to US tariffs, Commission President Ursula von der Leyen has indicated the possibility of imposing a tax on digital advertising revenues. Meanwhile, a report from the US Trade Representative in early April labeled EU digital regulations as a barrier to US exports.

The DMA is designed to prevent dominant digital platforms from abusing their market power and to ensure users have real freedom of choice online.

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