Apple, Meta likely to face modest fines over DMA breaches, sources say

Brussels: Apple and Meta Platforms are set to face modest fines for allegedly breaching landmark rules aimed at reining in their power, people with direct knowledge of the matter said on Monday.

Both companies have been in the European Commission's crosshairs since last year for potential breaches of the Digital Markets Act which could cost companies as much as 10% of their global annual sales.

The act, which became law in May 2023, seeks to make it easier for people to move between competing online services like social media platforms, internet browsers and app stores, allowing smaller companies to compete with Big Tech.

The EU antitrust enforcer is focused on making sure the companies comply with the law rather than sanctioning them, the sources said, explaining the rationale for modest fines.

Other reasons are the short duration of the alleged violations - the DMA came into force in 2023 - and the geopolitical climate, they said.

US President Donald Trump in a memorandum last month threatened to impose tariffs against countries that impose fines on U.S. companies. The EU has denied picking on US tech giants.

The sources said a final decision on the size of the fines has not yet been taken and the situation could still change. A decision is expected this month, in line with what EU antitrust chief Teresa Ribera told Reuters in February.

The Commission declined to comment.

In a compliance report published last week, Meta said that despite its concerted efforts to comply with EU regulation, it has continued to receive demands from regulators that go beyond what is written in the law.

Apple's DMA compliance report dated March 7 reiterated its argument that changes imposed by the law bring greater risks to users and developers, including new avenues for malware, fraud and scams.