Apple and Meta are threatening imminent charges under the EU’s Digital Markets Act

Apple and Meta Platforms could face charges for failing to comply with the EU’s Digital Markets Act (DMA) before the summer break, according to case insiders. The event marks a significant move by EU regulators to curb the power of major tech giants, Reuters reported on Friday.

The European Commission launched investigations into Google, Apple, Meta and Alphabet in March as part of a DMA that aims to create a more competitive digital market. These regulations require large tech companies to provide opportunities to smaller rivals and facilitate easier transitions between competing online services, including social media platforms, web browsers and app stores.

EU regulators plan to publish preliminary findings, similar to the antitrust allegations, before August. Apple is expected to be the first to face charges, followed by Meta, sources indicate. The Commission and Meta declined to comment on the matter, while Apple referred to its March statement, expressing confidence that its plans are in line with the DMA and its ongoing cooperation with the Commission.

Read more: Four States Join Expanded Antitrust Lawsuit Against Apple

These preliminary findings will present the Commission’s concerns, giving companies the opportunity to address them before a final decision is taken. This decision is expected before the end of the term of office of the head of the EU antitrust office, Margrethe Vestager, in November. Failure to comply with the DMA may result in financial penalties of up to 10% of the company’s total annual turnover.

The EU’s investigation into Apple is focusing on its steering policies that allegedly prevent app developers from informing users about third-party offers and impose new fees on developers. Additionally, another investigation into Apple’s Safari selection screen is expected to take more time to complete.

Meta’s initial findings focus on the latest “pay or consent” model, in which users must either pay a subscription fee to use Facebook and Instagram ad-free or consent to data tracking for targeted ads.

Source: Reuters