The European Union, on Wednesday, levied a financial penalty exceeding 700 million euros against Apple and Meta for transgressions related to digital competition regulations, potentially provoking a negative response from US President Donald Trump.
These sanctions pose a risk of exacerbating the already strained relations between the EU and Trump, as the two parties negotiate a potential agreement to avert his extensive tariffs on goods imported from the EU.
The European Commission imposed a fine of 500 million euros (approximately $570 million) on Apple after determining that the company obstructed developers from directing customers to alternative platforms outside of its App Store where more cost-effective options could be accessed.
Additionally, the Commission penalized Meta with a 200 million euro fine due to its “pay or consent” framework, which was found to contravene regulations governing the utilization of personal data on its platforms, Facebook and Instagram.
These penalties represent the inaugural enforcement actions taken under the Digital Markets Act (DMA), which became operational in the previous year, mandating that the largest technological corporations facilitate competitive practices within the EU marketplace.
The penalties may escalate should Meta and Apple fail to adhere to compliance directives within a 60-day timeframe, with the Commission warning the American corporations of the imposition of “periodic penalty payments.”
Over the past two years, the 27-member bloc has fortified its legislative framework through the introduction of two significant statutes, namely the Digital Services Act and the DMA.
Nevertheless, since Trump’s resurgence in the White House, apprehensions have emerged regarding the EU’s willingness to rigorously enforce these regulations.
Trump has consistently criticized the EU regarding its digital legislation and taxation policies, alleging that they constitute “non-tariff barriers” to international trade, and numerous technology executives have aligned themselves with his administration’s stance.
The Republican administration has instituted a 25 percent tariff on imports of steel, aluminum, and automobiles from the EU, which Brussels anticipates will be rescinded following the establishment of a mutually beneficial agreement.
