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Home » Apple and Meta expected to face EU prosecution under landmark tech rules, sources say
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Apple and Meta expected to face EU prosecution under landmark tech rules, sources say

i2wtcBy i2wtcJune 14, 2024No Comments2 Mins Read
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Hu Yun Qi

BRUSSELS (Reuters) – Apple Inc. and Meta Platforms Inc. are likely to be prosecuted by the summer for failing to comply with landmark EU rules aimed at curbing the companies’ influence, three people with direct knowledge of the matter said on Friday.

The European Commission launched investigations into both companies and Alphabet’s Google under the Digital Markets Act (DMA) in March and is considering Apple and Meta as priority cases, according to people familiar with the matter.

The DMA requires big tech companies to open up more space for smaller rivals and make it easier for users to move between competing online services such as social media platforms, internet browsers and app stores.

EU regulators are expected to publish preliminary findings similar to antitrust charges before the summer break in August, with Apple coming first, followed by Meta, the sources said.

The European Commission and Mehta declined to comment. Apple said in a statement in March that it was confident its plans comply with the DMA and that it would continue to engage in constructive discussions with the European Commission.

Companies can present remedies to address concerns outlined in the findings before a final decision is expected before EU antitrust chief Margrethe Vestager leaves office in November, which could include fines of up to 10 percent of a company’s annual worldwide turnover for violations.

The EU investigation targets Apple’s operating rules, which regulators say impose restrictions that prevent app developers from informing users about free offers outside the App Store, as well as new fees it imposes on app developers.

EU regulators are expected to sue Apple over the issue, and a second investigation focusing on the Safari web browser’s choice screen is likely to take longer, according to the people.

The preliminary investigation into Meta is focused on the company’s recently introduced pay-per-view or opt-in model, in which users pay for an ad-free subscription to Facebook and Instagram, the people said.

The FT was first to report that Apple would face EU lawsuits.

(Reporting by Hu Yun Qi; Editing by Jan Harvey)



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