EU Opts for Small Apple Fines Over DMA Violations, Wary of Trump Backlash [Report]
Next week, the European Union will reportedly impose fines on Apple and Meta, the parent company of Facebook, under its Digital Markets Act (DMA). The penalties, however, will be notably restrained as Brussels aims to enforce its new tech regulations without sparking a confrontation with U.S. President Donald Trump, according to a recent Financial Times report.The fines stem from separate investigations into the two tech giants. For Apple, regulators have zeroed in on App Store policies that may restrict developers from directing users to cheaper alternatives outside the platform. The company will face a fine and an order to adjust those rules. A second probe into Apple, examining the design of its web browser choice screen, will conclude without additional penalties. Meanwhile, Meta's "pay or consent" model, which requires users to either allow data tracking or pay for an ad-free experience, will also draw a fine and a mandate for changes.Under the DMA, penalties can reach up to 10 percent of a company's global revenue, potentially translating to billions for both Apple and Meta. Yet, three EU officials told the Financial Times that the European Commission is opting for fines well below that ceiling. The DMA, a relatively new framework aimed at reining in Big Tech's market power, remains untested in court, prompting a cautious approach from regulators.Continue ReadingSpotlight Deal:Samsung 49-inch Odyssey G93SC OLED Curved Monitor On Sale for 41% Off [Big Spring Sale]Share Article:Facebook, Twitter, LinkedIn, Reddit, EmailFollow iClarified:Facebook, Twitter, LinkedIn, Newsletter, App Store, YouTube
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The fines stem from separate investigations into the two tech giants. For Apple, regulators have zeroed in on App Store policies that may restrict developers from directing users to cheaper alternatives outside the platform. The company will face a fine and an order to adjust those rules. A second probe into Apple, examining the design of its web browser choice screen, will conclude without additional penalties. Meanwhile, Meta's "pay or consent" model, which requires users to either allow data tracking or pay for an ad-free experience, will also draw a fine and a mandate for changes.
Under the DMA, penalties can reach up to 10 percent of a company's global revenue, potentially translating to billions for both Apple and Meta. Yet, three EU officials told the Financial Times that the European Commission is opting for fines well below that ceiling. The DMA, a relatively new framework aimed at reining in Big Tech's market power, remains untested in court, prompting a cautious approach from regulators.
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