Apple and Meta will face fees imposed by the EU under technical regulations

Apple and Meta Platforms are expected to face fines for failing to comply with important EU regulations.

According to the Financial Times, Brussels is preparing to charge Apple for allegedly obstructing competition in its mobile app store, marking the first time EU regulators have used new digital rules against a large tech conglomerate.

The allegations would represent the first action taken against a technology company under the Digital Markets Act – a significant legal framework aimed at forcing dominant “internet gatekeepers” to support competition in the EU market.

EU regulators will present preliminary findings similar to antitrust charges before the summer break in August, with Apple the first to be charged, followed by Meta, sources said.

The commission and Meta declined to comment. Apple referred to its March statement in which it said it was confident its plan was compliant with the DMA and that it continued to cooperate constructively with the Commission, Reuters reported.

Companies have the opportunity to propose solutions to concerns raised by the investigation’s findings before a final decision is made, which is expected before EU antitrust chief Margrethe Vestager steps down in November. Potential impacts could include fines of up to 10% of a company’s total annual turnover for violations.

The EU investigation is focusing on Apple’s control policies, which regulators say prevent app developers from providing free information to users about alternative offerings outside the App Store. Additionally, it is examining Apple’s implementation of new fees for app developers.

Sensor Tower analysis shows that consumer spending in Apple’s App Store remained “relatively flat” throughout the second quarter of 2024. This suggests that EU regulations have not yet had a significant impact on the company’s financial results.