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Brussels fines Apple and Meta for noncompliance with the Digital Markets Act
The European Commission (EC) has just imposed the first two fines for noncompliance with the Digital Markets Act (DMA). After more than a year of investigation, it has imposed fines of €500 million on Apple and €200 million on Meta. In the first case, the agency says that the iPhone manufacturer imposed restrictions on application developers to inform customers about alternative offers outside the App Store. In this way, according to the EC, “consumers are not able to take full advantage of alternative and cheaper offers.” In the case of Meta, the EC says it should have requested users’ consent to combine their personal data between services, something it has failed to do in its binary ‘Consent or Pay’ advertising model. With this model, introduced in November 2023, which does not fall under the DMA, “Facebook and Instagram users in the European Union (EU) could choose between consenting to the combination of data for personalized advertising or paying a monthly subscription for a service are published.” The agency says also that in 2024 the company introduced a new version of the model with an option that uses less personal data to display ads. This is being evaluated and the EC “continues the dialogue with Meta, requesting the company to provide evidence of the practical impact of this new model.” These decisions fall within a geopolitical framework of negotiations between the United States and Brussels to lower tariffs imposed by Donald Trump on certain products. However, the amount of the fines, per El País, is far from the maximum possible; up to 10% of the company’s annual turnover. Teresa Ribera, Commissioner for Competition, stated, “today’s decisions send a strong and clear message. The DMA is a crucial instrument to unlock potential, choice and growth by ensuring that digital players can operate in competitive and fair markets. Apple and Meta have failed to comply with the DMA by implementing measures that reinforce the dependence of business users and consumers on their platforms. As a result, we have taken firm but balanced action based on clear and predictable rules. All organizations operating in the EU must comply with our laws and respect European values.”
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