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The EU is planning to impose minimal fines on Apple and Facebook owner Meta under the Digital Markets Act next week as Brussels attempts to avoid escalating tensions with US President Donald Trump.
According to those familiar with the decision, iPhone makers are expected to be fined and ordered to modify App Store rules according to an investigation into whether app developers will prevent consumers from sending consumers to offers outside the platform.
Regulators will also shut down another Apple investigation. This focused on the company’s design of web browser selection screens without sanctions.
Meta will also be fined and ordered to change the “payment or consent” model, forcing users to agree to track data or pay a subscription fee for the product’s ad-free experience.
Under the DMA, companies could face penalties of up to 10% of global sales, potentially billions of dollars for both companies.
But the Commission is aiming for a fine far below that threshold, three officials said that the Bullock’s digital rulebook is relatively new and the decision could still be challenged in court.
As Brussels attempts to implement a DMA, the move seeks to implement a DMA designed to curb the high-tech Giants’ dominance of the digital market, while avoiding a direct conflict with Washington.
The focus of the new committee, which took office in December, is also on compliance with the law’s leading tech companies rather than potential high fines of billions of euros, officials said.
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After Apple made a series of changes to comply with Bloc rules, Brussels regulators are set to drop cases as to whether Apple’s operating system will discourage users from switching browsers and search engines.
Imposing all forms of fines against American high-tech companies risks repulsion as American companies directly attacked EU penalties against American companies while Trump calls it a “form of taxation” while comparing it to “overseas fear tor.”
“This is an important test for the committee,” said one of the affected companies. “By targeting US tech companies further, it will raise transatlantic tensions, trigger retaliatory actions, and ultimately it is the member states and European companies that will bear the costs.”
The US President has warned of tariffs being imposed on countries that collect digital services taxes on American companies.
According to a memo released last month, Trump said he would investigate taxes and regulations or policies that “stifle growth” for American companies operating overseas.
Meta previously stated that it “meets EU regulatory requirements and exceeds what is required by EU law.”
The planned decision, which officials say could still be changed before it is made public, is scheduled to be presented to representatives of 27 EU member states on Friday. The announcement regarding the fine is set next week, but the timing may also change.
The committee declined to comment.
