Apple and Meta to be slapped with EU fines, but only as a warning shot

The US makes AI and electric vehicles, China makes AI and electric vehicles, the EU is busy coming up with tech regulations. As you know, there's a thing called DMA (Digital Markets Act) on the Old Continent. It's on for almost two years now and it aims to ensure fair behavior by dominant tech firms and prevent practices that hinder emerging platforms.

As you also probably know, Apple, Google, and Meta are investigated for DMA violations in the EU for a year now. And now, as Reuters reports, Apple and Meta are expected to receive fines for allegedly violating regulations designed to curb their market dominance.

However, the alleged fines will not be big, but relatively small and even modest, according to individuals familiar with the matter.

The European Commission has been scrutinizing both companies since last year for potential breaches of the Digital Markets Act, which allows for penalties of up to 10% of a company's global annual revenue.

10% of Apple's 2024 revenue – a staggering $391.04 billion – would equate to almost $40 billion and this sum is enough to make any CEO, even Tim Cook, mad. Meta's 2024 revenue is $164 billion, so I don't imagine Zuckerberg to be happy about paying over $16 billion either. So they should throw a party, if the DMA fines are in fact small.

Rather than focusing on punitive measures, EU antitrust authorities are prioritizing compliance with the law, the sources explained. The limited scope of the alleged violations – given the DMA's recent implementation – as well as broader geopolitical considerations, also contribute to the decision to impose only modest fines.

Last month, US President Donald Trump issued a memorandum warning of potential tariffs against countries penalizing American firms. The EU has rejected claims that its actions unfairly target US tech companies.

A final decision on the fines has not yet been made, and the outcome could still change. However, a ruling is anticipated this month, consistent with statements by EU antitrust chief Teresa Ribera in February. The European Commission has declined to comment to Reuters.

In a compliance report released last week, Meta stated that despite its extensive efforts to adhere to EU regulations, regulators continue to demand actions beyond what is stipulated in the law. Apple's compliance report, reiterated its position that the mandated changes increase risks for users and developers, citing concerns over malware, fraud, and scams.