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Apple, Meta set to face EU charges under landmark tech rules, sources say
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Apple, Meta set to face EU charges under landmark tech rules, sources say
Jun 14, 2024 11:03 AM

BRUSSELS, June 14 (Reuters) - Apple ( AAPL ) and Meta

Platforms ( META ) will likely face charges for failing to

comply with landmark EU rules aimed at reining in their power

before the summer, three people with direct knowledge of the

matter said on Friday.

The European Commission, which launched investigations into

the two companies and Alphabet's Google in March under

the Digital Markets Act (DMA), sees Apple ( AAPL ) and Meta as priority

cases, the people said.

The DMA requires Big Tech to open up space for smaller

rivals to compete and make it easier for people to move between

competing online services like social media platforms, internet

browsers and app stores.

EU regulators will issue preliminary findings which are

similar to antitrust charges before the summer break in August,

with Apple ( AAPL ) the first to be charged, followed by Meta, the

sources said.

The Commission and Meta declined to comment. Apple ( AAPL ) 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.

Companies can offer remedies to address concerns laid out in

the findings before a final decision expected before EU

antitrust chief Margrethe Vestager leaves office in November,

which could include fines up to 10% of a company's global annual

turnover for breaches.

The EU investigation targets Apple's ( AAPL ) steering rules, which

regulators say impose limitations that hinder app developers

from informing users about offers outside its App Store free of

charge, and also its new fees levied on apps developers.

EU regulators are expected to charge Apple ( AAPL ) related to this

issue, the people said, adding that a second investigation

focusing on its choice screen for its Safari web browser will

likely take more time.

The preliminary finding on Meta focuses on its recently

introduced pay or consent model where users pay a subscription

fee for an ad-free Facebook and Instagram, the people said.

The FT was the first to report that Apple ( AAPL ) would face EU

charges.

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