Apple and Meta have been fined by the European Union’s antitrust authorities under the Digital Markets Act. The companies will have to pay $570 million (Apple) and $228 million (Meta), respectively. But why not billions from global turnover?
Apple and Meta have been fined by the European Union’s antitrust authorities under the Digital Markets Act. The companies will have to pay $570 million (Apple) and $228 million (Meta), respectively. But why not billions from global turnover?
The EU’s Digital Assets Act places special obligations and restrictions on technology companies and digital platforms, designated as «gatekeepers» that provide essential services, including search engines, app stores and messaging services. Under the rules, the companies are called upon to ensure a level playing field for other companies, writes Guardian Europe columnist Alexander Hirst.
So, if we operate according to this law, then theoretically fines for violators can reach up to 10% of the company’s global turnover or 20% for a repeated violation. Accordingly,
Calculations of maximum fines are based on the companies' financial data:
The EU Competition Commission has said that Apple must remove technical and commercial restrictions that prevent app developers from directing users to cheaper offers outside the App Store, The Hindu reports .
Meta was accused of violating the Digital Markets Act (DMA) because its model provides Facebook and Instagram users who consent to tracking with a free service funded by advertising revenue. Alternatively, they can pay for an ad-free service.
Companies have two months to comply with the orders or risk a fine.
Companies criticized the decision of the antitrust authorities:
Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for our users' privacy and security, harmful to products, and forcing us to give away our technology for free.
The European Commission is trying to hinder successful American businesses by allowing Chinese and European companies to operate under different standards. This is not just a fine; the Commission has forced us to change our business model, effectively imposing multi-billion dollar tariffs on Meta, requiring us to offer lower quality services.
