Apple and Meta could soon face charges from the European Commission for allegedly breaching the Digital Markets Act (DMA) rules. According to reports from the Financial Times and Reuters, the Commission is planning to charge Apple first, followed by Meta.
The European Commission is targeting Apple for its “steering” rules, which require developers to use Apple’s in-app payment system and prevent them from directing users to third-party purchase options. This practice, according to the Commission, restricts competition and consumer choice.
EU antitrust chief Margrethe Vestager highlighted the issue, stating, “These new terms do not allow app developers to communicate freely with their end users or conclude contracts with them.”
Meta is also facing scrutiny, with the Commission reportedly investigating its ad-free subscription model for Facebook and Instagram in the EU. This model, introduced to comply with the DMA, is now under review for potential violations.
The Commission will issue preliminary findings, giving Apple and Meta the opportunity to make changes to comply with the DMA before a final decision is made. Apple has been singled out to be charged first, indicating the urgency of the Commission’s concerns.
If confirmed, violations of the DMA could result in fines of up to 10% of a company’s global annual turnover. Apple has until March next year to address these concerns and potentially avoid significant penalties.
Apple has denied any wrongdoing and stated that it has already made several changes to comply with the DMA based on feedback from developers and the Commission. “We are confident our plan complies with the law, and estimate more than 99% of developers would pay the same or less in fees to Apple under the new business terms we created,” an Apple spokesperson said.