European Commission Plans to Sue Apple and Meta for Violating DMA Rules
The European Commission (EC) is preparing to sue Apple and Meta for allegedly violating the Digital Markets Act (DMA) regulations, according to sources cited by Reuters. This would mark the first instance of the EC taking legal action against companies for this reason.
Investigation Findings to be Released by August
Reuters reports, based on information from three insiders, that the EC aims to announce the preliminary results of its investigation into Apple and Meta before the summer recess in August. Apple is expected to be charged first, followed by Meta. The companies will then have a few months to address the EC's concerns by adjusting their policies.
Potential Fines and Final Judgement
The final judgement is expected around November. If Apple and Meta are still found non-compliant, the EC could impose fines of up to 10 percent of their global annual revenue, or 20 percent if the violation persists.
Details of the Alleged Violations
The Financial Times, citing its own sources, also reports that Apple will be sued by the EC, although it does not mention Meta. According to both news outlets, Apple violates DMA rules by restricting developers from freely communicating about offers outside the App Store within their apps unless they pay Apple a fee.
The lawsuit against Meta, as reported by Reuters, concerns the choice presented to European users on Facebook and Instagram since last year. Users must choose between a free version of the social media platforms with personalized ads or a paid subscription.
Ongoing Investigations
In March, the EC announced it was investigating these companies for potential non-compliance with the DMA. Apart from the mentioned issues, Apple is also being scrutinized on other fronts. These include whether Apple's apps are easily removable and if the design of the browser choice screen discourages users from selecting alternatives to Safari. Additionally, the EC has opened an investigation into Google, though it remains unclear if Google will face similar charges.
The outcomes of these investigations and potential lawsuits will be closely watched as they could set significant precedents for the enforcement of digital market regulations in the European Union.
