November 21, 2024

Report: Apple and Meta may be charged in the EU

Before the August summer break, EU regulators are anticipated to release preliminary conclusions akin to antitrust charges

According to three persons aware with the matter, Apple and Meta Platforms are anticipated to face penalties for failing to comply with important EU legislation intended to reduce their dominance prior to the summer.

Apple and Meta are considered high-priority cases by the European Commission, which launched investigations into them and Alphabet’s Google in March under the Digital Markets Act (DMA). According to the DMA, big IT companies must make room for new, smaller competitors to enter the market and make it easier for users to switch between rival online services like app stores, web browsers, and social media platforms.

EU investigators are anticipated to disclose preliminary conclusions similar to antitrust accusations before the summer break in August. Sources familiar with the situation anticipate that Apple will be the first to face these charges, with Meta following next.

Meta declined to comment, as did the Commission. Apple cited its March statement, in which it expressed confidence that its strategy is in line with the DMA and highlighted its continuous positive interaction with the Commission.

Companies can offer solutions to address the issues raised in the conclusions before EU antitrust chief Margrethe Vestager departs in November. It is anticipated that a final decision will be reached, with the potential for fines of up to 10% of a company’s annual global revenue for violations.

The European Union is looking into Apple’s steering guidelines, which authorities claim prevent app developers from telling customers about free deals outside of the App Store, as well as the company’s new levies for app developers.

The sources stated that it is expected that Apple will face legal action in this regard from EU regulators. More time is also anticipated to be needed for a second investigation into its choice screen for the Safari web browser.

According to the sources, Meta’s recently launched pay or consent model—in which users pay a monthly fee to use Facebook and Instagram without advertisements—is the focus of the preliminary research on the company.

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