Quote from Alex bobby on June 20, 2025, 4:34 AM

Apple and Meta to Avoid Immediate Sanctions Despite Failing EU Digital Rules Compliance Deadline

As the European Union’s landmark Digital Markets Act (DMA) enforcement deadline looms, US tech giants Apple and Meta are poised to escape immediate financial sanctions, despite failing to meet key obligations under the sweeping digital regulation. An EU spokesperson confirmed to Euronews this week that while the grace period for compliance ends on June 26, penalties will not be automatically imposed, marking a measured approach in the EU’s attempt to reshape Big Tech behaviour.

The Commission’s decision reflects a strategic shift—prioritising dialogue and gradual enforcement over punitive measures, at least for now.

April Fines Marked First Strike

In April 2025, the European Commission fined Apple €500 million and Meta €200 million for breaches of the DMA, the EU’s most ambitious regulatory framework yet aimed at reining in the market dominance of Big Tech. These fines were accompanied by a 60-day grace period, intended to give the companies time to adjust their business models and policies to align with the new rules.

Apple was sanctioned for blocking app developers from directing users to cheaper offers outside its App Store—a practice that contravenes DMA rules designed to reduce the stranglehold dominant platforms have over digital markets.

Meta’s fine stemmed from its controversial “pay or consent” model, which forces users to either consent to the collection and use of their personal data for targeted ads or pay a monthly subscription to avoid advertising altogether. The Commission viewed this setup as undermining user choice and privacy.

Despite these initial penalties, both companies have continued to tread a cautious path toward compliance. Meta, for example, introduced a revised advertising model in November 2024, which it claims uses less personal data. That model is still under evaluation by EU officials, highlighting the complexity of enforcing DMA rules across evolving tech ecosystems.

Compliance Over Punishment

Unlike the hefty antitrust fines imposed under former EU Competition Commissioner Margrethe Vestager—who led high-profile cases against Google and Amazon—the April sanctions were relatively modest. EU officials have explained that the lower amounts reflect the short duration of violations since the DMA only came into effect in 2023. The Commission’s current priority is to achieve lasting compliance, rather than simply punish non-compliance.

A spokesperson reiterated this stance to Euronews, explaining that financial penalties will not be applied automatically after the June 26 deadline. Instead, the Commission will first conduct a preliminary analysis of the companies’ updated practices and engage in further dialogue with Apple and Meta before any additional fines are considered.

This approach signals a broader regulatory philosophy: fostering cooperation where possible, while reserving harsher measures for persistent or wilful defiance.

DMA: A New Digital Rulebook

The Digital Markets Act is the cornerstone of the EU’s digital reform agenda. Its goal is to prevent dominant platforms—so-called “gatekeepers”—from abusing their market power and locking users into closed ecosystems. The legislation introduces strict rules for transparency, fair competition, and consumer choice across the digital economy.

For Apple, this means loosening control over its App Store and allowing developers more freedom in how they reach and price their users. For Meta, it involves ensuring users can access services without being coerced into trading their personal data.

While enforcement is still in its early stages, the DMA is widely seen as a test case for global digital governance. If successful, it could set a precedent for how other regions regulate tech giants.

Geopolitical Tensions and Trade Fallout

The regulatory battle is unfolding against a backdrop of worsening transatlantic trade tensions. Since March, the EU and US have traded barbs over tariffs and tech regulation. Commission President Ursula von der Leyen has floated the idea of a tax on digital advertising revenues, seen by some as a direct response to US protectionism.

In April, the Office of the US Trade Representative published a report branding the DMA and other EU digital rules as barriers to American exports. The document added fuel to an already simmering dispute, framing EU tech regulation as a threat to US economic interests.

Despite the diplomatic strain, EU officials insist the DMA is not about protectionism, but about creating a level playing field for consumers and businesses in Europe’s digital space.

Looking Ahead: Will the EU Get Tougher?

While Apple and Meta have dodged immediate penalties, their compliance journey is far from over. The Commission has made it clear that non-compliance will not be tolerated indefinitely. If upcoming reviews show continued violations, periodic penalty payments—potentially up to 5% off global turnover—could still be on the table.

The delay in sanctions offers Apple and Meta a final window to adapt, but it also sends a message: the EU is serious about reform, but willing to engage constructively. Whether this approach leads to lasting change or emboldens further defiance remains to be seen.

Conclusion: A Tactical Pause, Not a Free Pass

The EU’s decision not to impose immediate financial penalties on Apple and Meta should not be mistaken for weakness. Rather, it reflects a pragmatic strategy—giving Big Tech a last opportunity to align with European values around fairness, privacy, and competition.

But the message from Brussels is clear: The clock is ticking. Compliance is not optional, and the patience of regulators is not limitless. As the world watches how the DMA is enforced, the next few months will be a decisive chapter in Europe’s digital future.

Apple and Meta will not face immediate EU sanctions for violating the Digital Markets Act, as the Commission opts for dialogue over penalties after the June 26 compliance deadline.