Apple, Meta set to face EU charges under landmark tech rules, sources say

By
Item 1 of 2 An Apple logo is pictured in an Apple store in Paris, France, March 6, 2024. REUTERS/Gonzalo Fuentes//File Photo
[1/2]An Apple logo is pictured in an Apple store in Paris, France, March 6, 2024. REUTERS/Gonzalo Fuentes//File Photo Purchase Licensing Rights, opens new tab
BRUSSELS, June 14 (Reuters) - Apple (AAPL.O), opens new tab and Meta Platforms (META.O), opens new tab 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 (GOOGL.O), opens new tab Google in March under the Digital Markets Act (DMA), sees Apple 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 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.
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 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 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 would face EU charges.

Sign up here.

Reporting by Foo Yun Chee; Editing by Jan Harvey

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Purchase Licensing Rights

Thomson Reuters

An agenda-setting and market-moving journalist, Foo Yun Chee is a 20-year veteran at Reuters. Her stories on high profile mergers have pushed up the European telecoms index, lifted companies' shares and helped investors decide on their move. Her knowledge and experience of European antitrust laws and developments helped her broke stories on Microsoft, Google, Amazon, numerous market-moving mergers and antitrust investigations. She has previously reported on Greek politics and companies, when Greece's entry into the eurozone meant it punched above its weight on the international stage, as well as Dutch corporate giants and the quirks of Dutch society and culture that never fail to charm readers.

Read Next