Digital Markets Act

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European Commission Warns Meta That ‘Consent or Pay' Model Remains Noncompliant
PYMNTS.com· 2025-07-15 22:39
Core Viewpoint - Meta is engaged in an ongoing conflict with the European Commission regarding its "consent or pay" model, which allows users to opt for ad-free services for a fee, and this model is under scrutiny for compliance with the EU's Digital Markets Act [1][2]. Group 1: Regulatory Actions - The European Commission has indicated that Meta's "consent or pay" model requires further modifications to comply with antitrust provisions of the Digital Markets Act, following a €200 million fine imposed on the company in April [2][4]. - The Commission's latest communication to Meta suggests the possibility of a formal warning and additional fines if compliance is not achieved [2][6]. - Meta has made "limited changes" since the initial fine, and the Commission's letter details the outstanding issues that need to be addressed [3][4]. Group 2: Company Response - A Meta spokesperson claimed that the options provided to EU users exceed the requirements set forth by the Digital Markets Act [3]. - Meta's Chief Global Affairs Officer stated that the Commission's demands effectively impose a multibillion-dollar tariff on the company while requiring it to offer a less competitive service [6]. - Reports suggest that Meta is "very unlikely" to make further adjustments to its "consent or pay" policy, indicating potential for significant new fines from the European Commission [6][7]. Group 3: Potential Consequences - If Meta is found in continued violation of the regulations, it could face escalating fines of up to 5% of its daily turnover [7].
Apple Fights $580 Million App Store Fine in Europe
PYMNTS.com· 2025-07-07 14:50
Core Points - Apple has appealed a $580 million fine imposed by the European Union, claiming it is "unlawful" and exceeds legal requirements [1][2] - The European Commission stated that Apple violated the Digital Markets Act (DMA) by not allowing developers to direct users to make purchases outside of its app store [2] - Apple has updated its EU App Store policies to comply with local regulations, introducing a tiered commission structure of 5% or 13% along with a 2% user acquisition fee [4] Company-Specific Developments - The European Commission also fined Meta $234 million for violating DMA obligations related to consumer data choices [3] - Apple faces ongoing legal challenges regarding its app store practices, including a recent ruling in California requiring the company to allow U.S. developers to direct users to off-site purchases [5] - In a separate issue, a German data protection authority has flagged the DeepSeek AI chatbot app as "illegal content," requiring Apple and Google to decide on its availability in their app stores [6][7]
Apple appeals 500 million EU fine over App Store policies
CNBC· 2025-07-07 13:29
Core Viewpoint - Apple is appealing a €500 million ($586 million) fine imposed by the European Union for violating the Digital Markets Act (DMA) [1][3] Group 1: Regulatory Actions - The European Commission announced the fine in April, stating that Apple breached its anti-steering obligation under the DMA by imposing restrictions on the App Store [3] - The Commission highlighted that Apple's restrictions prevent app developers from fully benefiting from alternative distribution channels and limit consumer access to alternative offers [4] Group 2: Company Response - Apple claims that the European Commission is mandating how it operates its App Store, which it argues creates confusion for developers and is detrimental to users [2] - The company has made changes to its App Store policies in Europe to comply with the DMA and avoid further fines [2] Group 3: Industry Impact - Companies such as Epic Games and Spotify have raised concerns about the App Store's restrictions, particularly regarding the 30% cut Apple takes on in-app purchases, which complicates their ability to communicate alternative payment methods to users [5]
X @Bloomberg
Bloomberg· 2025-07-04 13:06
Google will propose highlighting search results from other companies’ shopping and travel platforms at the top of its page in an attempt to comply with the EU’s Digital Markets Act and fend off fines https://t.co/4iojIyDK2A ...
Meta says will appeal 'unlawful' EU fine
TechXplore· 2025-07-03 16:00
Core Points - Meta plans to appeal a 200-million-euro fine imposed by the EU for allegedly violating digital competition rules [1][2] - The fine is related to Meta's "pay for privacy" system, which requires users to either pay to avoid data collection or consent to share their data to use the platforms for free [2][3] - The European Commission concluded that Meta did not offer users a less personalized but equivalent version of its platforms, and warned of potential daily penalties under the Digital Markets Act (DMA) if compliance was not achieved [3] Company Defense - Meta's vice president Tim Lamb argues that the EU's decision is incorrect and unlawful, citing a 2023 EU court ruling that supports subscription models as a valid option [4] - Lamb contends that the EU's April decision disregards this ruling and incorrectly concludes that Meta's user choice does not comply with the DMA [4]
Apple reveals complex system of App Store fees to avoid EU fine of 500 million euro
CNBC· 2025-06-26 19:00
Core Viewpoint - Apple has revised its App Store policies in Europe to comply with the Digital Markets Act and avoid a potential fine of 500 million euros ($585 million) from the EU [1][3]. Policy Changes - The new policies involve a complex fee structure for app developers, with some now facing three separate fees for a single download [2]. - A new "core technology commission" fee of 5% will be applied to all digital purchases made outside the App Store [2]. Compliance and Regulatory Pressure - Apple claims that the changes were not voluntary but were necessitated by the European Commission's regulations, which could impose fines of up to 50 million euros per day [3]. - The European Commission is currently reviewing Apple's new terms to determine compliance with the Digital Markets Act [3][4]. Market Dynamics - The situation highlights Apple's strong defense of its App Store policies, which are a significant revenue source, generating fees between 15% and 30% on downloads [4]. - Despite a recent court ruling in the U.S. that prohibited certain practices, Apple continues to assert its right to a commission on iPhone apps linking to overseas digital purchases [5].
No Trump Card: EU Says Tech Crackdown Isn't a US Trade Tactic
Bloomberg Television· 2025-06-26 08:44
So I'd like just to begin there in terms of what you have unveiled here, do you think that this gives now the European Union a real chance to compete with some of these very sort of heavily government backed industries in China, for example, and in the United States with the Inflation Reduction Act. Hello. Good morning.So it's not against anyone, but it is just to assure that it is not that we are reliable, predictable and stable continent. It is that we are an attractive continent and that we, the Member S ...
Apple Reportedly Negotiating to Stave Off EU App Store Fines
PYMNTS.com· 2025-06-23 20:13
Core Points - Apple is in negotiations with European regulators to avoid escalating fines related to the EU's Digital Markets Act (DMA) [2][3] - The company has already incurred a fine of 500 million euros for violating the DMA [2] - Apple is expected to offer concessions regarding its "steering" provisions that limit user access to offers outside the App Store [2][4] Regulatory Context - The European Commission (EC) has mandated Apple to revise its rules within two months of the fine, with a compliance deadline set for July 26 [3] - If Apple fails to comply, fines could escalate to 5% of its average daily global revenue [3] - The EC is working closely with Apple to ensure effective compliance but has not speculated on the outcome before the deadline [5] Financial Implications - Discussions have included Apple's "Core Technology Fee," which charges developers for annual installs after 1 million downloads [4] - The company faces a growing list of regulatory challenges in Europe, including a 1.8 billion euro fine in 2023 for practices harming music-streaming competitors [6] Industry Landscape - Other American tech giants, such as Google, Amazon, and Microsoft, are also facing significant regulatory scrutiny and fines in the EU [7]
Apple appeals EU order forcing iPhone to be more compatible with rivals: ‘Deeply flawed'
New York Post· 2025-06-02 15:10
Core Viewpoint - Apple is appealing a European Union order that mandates increased compatibility of its devices with those of rival companies, citing concerns over user data sharing and potential impacts on innovation and user experience [1][3][4]. Group 1: Appeal Details - Apple filed its appeal in the EU's General Court in Luxembourg before the May 30 deadline [2]. - The company argues that the order would require sharing sensitive user data, which it claims could compromise user security and lead to a diminished experience for European customers [3][4]. Group 2: Compliance and Industry Context - Apple has reportedly assigned up to 500 engineers to find solutions to comply with the Digital Markets Act [4]. - The Digital Markets Act, effective in 2023, allows fines of up to 10% of annual revenue for non-compliance, with Apple already facing a $570 million fine for not facilitating third-party app developers [6]. Group 3: Industry Reactions - Competitors like Meta, Google, Spotify, and Garmin have requested more data access, indicating a broader industry push for changes in how Apple operates [4]. - Critics, including Epic Games, support the Digital Markets Act, arguing it holds Apple accountable for anti-competitive practices [7][9].