European Union to slap Meta with fine up to $1B or more for breaching strict antitrust rules: sources

Core Viewpoint - The European Union is preparing to impose a significant fine on Meta, potentially exceeding $1 billion, for alleged violations of its antitrust regulations under the Digital Markets Act [1][2][3]. Group 1: Regulatory Actions - The European Commission is expected to conclude that Meta is not in compliance with the Digital Markets Act, which took effect in 2023 and applies strict competition rules to Meta and six other companies classified as internet gatekeepers [1][2]. - The EU's investigation into Meta is anticipated to conclude soon, with an announcement regarding enforcement actions to follow, including a "cease-and-desist" notice [3]. - Under the Digital Markets Act, companies can face fines of up to 10% of their global revenue, which could increase to 20% for repeat offenses [7]. Group 2: Specific Allegations Against Meta - Meta has been accused of violating the Digital Markets Act by implementing a "pay or consent" model for ads on its platforms, which the EU claims restricts user choice [7][8]. - The European Commission criticized Meta's subscription service launched in 2023, which offers an ad-free experience for a fee while requiring user consent for data usage for targeted ads [8]. Group 3: Broader Context and Implications - Other major tech companies, including Apple, Google, and Amazon, are also under scrutiny by the EU for similar antitrust violations, with potential fines expected soon [4][5][11]. - The EU's actions have drawn criticism from U.S. officials, including President Trump, who views these fines as a form of economic extortion against American companies [1][12][14]. - Meta's CEO, Mark Zuckerberg, has expressed concerns that the EU's fines resemble tariffs and have become a systematic approach to regulating American tech companies [15][16].