Apple and Meta Platforms are expected to be charged for non-compliance with significant EU regulations.
According to The Financial Times, Brussels is preparing to charge Apple for allegedly impeding competition on its mobile app store, marking the first instance where EU regulators have employed new digital regulations to target a major tech conglomerate.
These charges would represent the first actions taken against a tech company under the Digital Markets Act, a significant legislative framework aimed at compelling dominant "online gatekeepers" to foster competition within the EU market.
EU regulators will issue preliminary findings which are similar to antitrust charges before the summer break in August, with Apple the first to be charged, followed by Meta, the sources said.
The Commission and Meta declined to comment. Apple referred to its March statement where it said that it was confident that its plan complies with the DMA and that it continues to constructively engage with the Commission, reported Reuters.
Companies have the opportunity to propose solutions to address the concerns outlined in the investigation's findings before a final decision, which is anticipated before EU antitrust chief Margrethe Vestager steps down in November. Potential outcomes could include fines of up to 10% of a company's global annual turnover for violations.
The EU investigation focuses on Apple's steering rules, which regulators argue restrict app developers from informing users about alternative offers outside its App Store without charge. Additionally, it examines Apple's implementation of new fees for app developers.
Analysis by Sensor Tower indicates that consumer spending on Apple's App Store remained "relatively flat" throughout the second quarter of 2024. This suggests that the EU rules have not yet significantly impacted the company's financial performance.
