What you need to know:
- The EU probe focuses on Apple’s steering rules, criticized by regulators for restricting app developers from informing users about free alternatives outside the App Store, as well as its introduction of new fees for app developers.
- Regarding Meta, preliminary findings scrutinize its newly implemented pay or consent model, where users can opt to pay a subscription fee for an ad-free experience on Facebook and Instagram, as per sources.
According to sources familiar with the matter, Apple (AAPL.O) and Meta Platforms (META.O) are expected to face charges for non-compliance with significant EU regulations aimed at curbing their market dominance by summer. The European Commission, which initiated probes into these companies and Alphabet’s (GOOGL.O) Google in March under the Digital Markets Act (DMA), considers Apple and Meta as high-priority cases.
The Digital Markets Act (DMA) mandates large tech firms to create opportunities for smaller competitors and facilitate easier transitions between competing online services such as social media platforms, web browsers, and app stores.
Sources indicated that EU regulators plan to issue preliminary findings akin to antitrust charges before the August summer break, starting with Apple, followed by Meta. The Commission and Meta declined to provide comments. Apple referred to its March statement asserting confidence in its compliance with the DMA and ongoing constructive engagement with the Commission.
Before a final decision expected before EU antitrust chief Margrethe Vestager leaves office in November, companies have the opportunity to propose remedies addressing concerns raised in the findings. Potential penalties could reach up to 10% of a company’s global annual turnover for violations.
The EU probe focuses on Apple’s steering rules, criticized by regulators for restricting app developers from informing users about free alternatives outside the App Store, as well as its introduction of new fees for app developers.
According to sources, EU regulators are anticipated to formally accuse Apple regarding this matter. They also noted that a separate investigation concerning Apple’s choice screen for its Safari web browser may require additional time.
Regarding Meta, preliminary findings scrutinize its newly implemented pay or consent model, where users can opt to pay a subscription fee for an ad-free experience on Facebook and Instagram, as per sources.
The Financial Times first reported on Apple’s expected EU charges.
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