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EU to fine Apple, Meta under landmark tech law this week amid rising US-EU trade tensions
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  • EU to fine Apple, Meta under landmark tech law this week amid rising US-EU trade tensions

EU to fine Apple, Meta under landmark tech law this week amid rising US-EU trade tensions

FP Tech Desk • March 31, 2025, 12:48:20 IST
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The timing of the fines is politically charged. Last month, US President Donald Trump signalled a hardening stance towards the regulation, describing it in a memo as a potential trade barrier and warning that it could trigger reciprocal tariffs on European goods

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EU to fine Apple, Meta under landmark tech law this week amid rising US-EU trade tensions
European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium. File image/Reuters

The European Commission is expected to fine Apple and Meta this week for breaching the EU’s sweeping digital competition law, in a move that risks drawing Big Tech further into the brewing economic standoff between Brussels and Washington.

The penalties will be the first issued under the EU’s landmark Digital Markets Act (DMA), which came into force last year and sets strict new obligations for how large online platforms must operate in the European market.

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The Commission has been investigating Apple and Meta for over a year and is now poised to announce the outcome of two probes into Apple and one into Meta, with decisions expected as soon as the end of the week, Politico reported.

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Apple is expected to be fined for policies that restrict app developers from informing users of alternative purchasing options outside its ecosystem. A second investigation into Apple’s restrictions on browser defaults may be closed, with officials satisfied that recent changes by the company have addressed the concerns of rival browser makers.

Meta will face penalties for imposing terms and conditions that breach the DMA’s rules on the use of personal data, according to people briefed on the decision.

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Fine geopolitics

Although the DMA enforcement falls under the Commission’s competition directorate, the broader geopolitical context has influenced how and when decisions are communicated, according to people familiar with the matter. The Commission is said to be coordinating its messaging more closely than usual amid the deteriorating trade climate.

While the DMA is officially a competition tool, the timing of the fines is politically charged. Last month, US President Donald Trump signalled a hardening stance towards the regulation, describing it in a memo as a potential trade barrier and warning that it could trigger reciprocal tariffs on European goods.

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“This is not just about fines — it’s about the Commission kneecapping successful American businesses simply because they’re American while letting Chinese and European rivals off the hook,” Politico quoted a person close to the Meta investigation as saying.

The United States is preparing to roll out a fresh round of trade tariffs on April 2, and sources say the White House is examining EU digital regulations, including the DMA, as potential examples of non-tariff barriers that could come under scrutiny.

Sources familiar with the Commission’s internal deliberations say that while the pressure from Washington is noted, it is not the primary driver of enforcement action. Instead, the novelty of the DMA and the need to set clear precedents for future cases are seen as more critical.

Despite the escalating rhetoric, EU officials have stressed that enforcement of the DMA is rooted in shared concerns about the power of Big Tech.

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