Apple encounters yet another billion-dollar penalty in the EU

The EU Commission is planning to file lawsuits against US technology giants Apple and Meta before the summer, according to reports from the Financial Times and Reuters. These companies are suspected of violating the Digital Markets Act (DMA), which aims to curb their market power.

Apple is expected to be the first to face charges, with Meta following soon after. Since the beginning of March, both companies have had to adhere to stricter rules under EU law, but the Commission doubts they are complying. Apple is facing scrutiny over the App Store and developer fees, while Meta is being questioned about paid subscriptions with non-personalized ads on Facebook and Instagram in the EU.

The organization noyb, founded by data protection activist Max Schrems, has raised concerns about data protection issues related to the paid versions of these services. The EU Commission is expected to provide preliminary investigation results to the companies and give them a chance to make changes before potentially bringing charges in the coming weeks.

Failure to comply with EU regulations could result in fines of up to 10 percent of their annual turnover for Apple and Meta. The Commission had already fined Apple in March for abusing its dominant market position in the distribution of music streaming apps to iPhone and iPad users, resulting in a 1.8 billion euro penalty. Apple has appealed this decision.