(Viral Buzz News) —
Apple Inc.
and
Meta Platforms Inc.
were hit by relatively modest European Union fines totaling €700 million ($798 million) for violating tough new antitrust rules for Big Tech, following warnings of harsh retaliation from US President Donald Trump.
The EU regulators imposed the fines — €500 million on Apple and €200 million on Meta — as part of their enforcement of the Digital Markets Act. This act outlines specific rules and restrictions primarily targeting major tech companies based in Silicon Valley.
Both Apple and Meta have failed to meet expectations,” EU antitrust head TeresaRibera stated on Wednesday. “Every company doing business within the EU is required to adhere to our regulations and uphold European values.
The penalties — imposed for the first time under the DMA — are significantly less severe compared to those previously handed down through conventional European Union competition laws. This approach may be perceived as an effort to prevent antagonizing Trump, who has recently introduced numerous tariffs on various world economies. Notably, he has particularly criticized the EU’s technology regulations, labeling them as non-tariff trade barriers targeted by what he refers to as reciprocal tariffs.
The European Commission stated that Apple did not permit developers to direct customers away from the App Store to complete transactions elsewhere. Similarly, Meta’s approach to offering ad-free options for Instagram and Facebook violated this technology regulation, with fines potentially reaching up to 10 percent of a corporation’s worldwide yearly earnings.
Both companies have to adhere to the EU ruling within 60 days, otherwise they may incur additional fines. Apple additionally received a warning that it could face consequences if it fails to comply.
new fee structure
for app developers — itself a plan devised to comply with EU rules — isn’t in line with the EU Big Tech rulebook.
In response to the European Union’s fine, Apple reacted strongly, alleging that the bloc’s regulatory body was unfairly targeting the company and compelling it to surrender its technological advancements without compensation. Based in Cupertino, California, Apple announced its intention to contest this decision within the EU judicial system. This comes shortly after the company faced another such issue just twelve months ago.
€1.8 billion
European Union fines Apple for blocking competing music streaming services on iPhones.
Joel Kaplan, Meta’s leader for global affairs, responded by stating that the EU “is trying to undermine thriving U.S. enterprises while permitting Chinese and European firms to function under distinct regulations.”
The EU ruling “goes beyond merely imposing a fine; the commission is compelling us to alter our business approach, essentially levying a multibillion-dollar tax on Meta while delivering a subpar service,” Kaplan stated. “Additionally, by unjustly limiting targeted ads, the European Commission is adversely affecting European companies and economic systems.”
Brian Hughes, a spokesperson for the National Security Council at the White House, described the Digital Markets Act as a “discriminatory” component of the EU’s “regulatory downward spiral.”
‘Danger to Open Civic Societies’
This new kind of economic coercion will not be accepted,” Hughes stated. “Regulations that operate beyond our borders to single out and weaken U.S. businesses, hinder progress, and facilitate suppression will be seen as obstacles to commerce and a clear danger to an open civic society.
When asked if the commission intentionally set the fines at a lower level to avoid antagonizing Trump, the European Union Commission based in Brussels stated that the penalties were “commensurate” with the severity and length of the violations under the DMA, which came into effect two years ago.
“This focuses on enforcement rather than trade talks,” stated commission spokesperson Arianna Podesta to the press.
Nevertheless, the magnitude of these penalties indicates “a reduction in stringent European oversight of American technology conglomerates,” as stated by Viral Buzz Newstelligence’s analyst.
Tamlin Bason
.
Under the competition law, penalties could have reached up to 10 percent of total revenue; however, they ultimately amounted to less than 0.15 percent of each company’s projected sales for 2024,” noted Bason. “This suggests a cautious approach towards stringent enforcement amid heightened tensions between U.S.-EU relations.
Even though it was fined, Apple observed that European Union regulators ended an inquiry into online browsers once the company reshaped how it provides users with choices for their iPhones.
The EU regulators changed their stance regarding targeting Facebook Marketplace under the DMA as well. Meta faced this issue too.
€798 million EU fine
For supposed misuses of that platform during the previous year according to typical antitrust laws.
Apple stocks climbed 2.4%, and Meta gained 4% during New York trading sessions by 4:15 p.m. local time, whereas the S&P 500 Index increased by 1.7%.
In recent years, the European Union has imposed substantial penalties on companies, with fines exceeding $8 billion levied against them.
Alphabet Inc.
It includes an order for Google and a separate directive for Apple to repay Ireland €13 billion in back taxes.
Due to its abuse-of-dominance regulations, it has compelled modifications as well.
Amazon.com Inc.
Amazon’s market platform and Apple’s swipe-to-pay chip, while also exploring
Microsoft Corp.
video conference software, Teams.
–Assisted by Mark Gurman, Lynn Doan, Kate Sullivan, and Kevin Whitelaw.
(Updated with an additional comment from the NSC in the ninth paragraph)
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