EU To Issue Minimal Fines To Apple And Meta To Avoid Retaliation From The US - Meta Platforms (NASDAQ:META)

The European Union (EU) is reportedly set to impose minor penalties on Apple Inc. AAPL and Meta Platforms Inc. META, the parent company of Facebook, under its Digital Markets Act (DMA).

What Happened: To avoid escalating tensions with U.S. President Donald Trump, the EU has reportedly decided to limit fines on Apple and Meta. Apple is expected to face a fine and be ordered to modify its App Store rules after the investigation examined whether these rules restrict app developers from guiding consumers to external offers. Regulators will close another investigation into Apple’s web browser choice screen design without imposing any sanctions, reported the Financial Times.

Similarly, Meta may face fines and be required to change its “pay or consent” model, which forces users to choose between accepting data tracking or paying for an ad-free experience.

As per the DMA, companies can be penalized up to 10% of their global turnover, potentially resulting in billions of dollars in fines for both companies. However, the European Commission plans to impose lower fines than the maximum allowed, as the DMA is new and decisions may face legal challenges.

Why It Matters: The EU is enforcing the DMA to curb tech giants’ dominance while avoiding direct conflict with Washington. The new commission, which assumed office in December, is more concerned with Big Tech companies’ compliance with the law than imposing high fines.

The EU’s decision to impose fines on Apple and Meta also comes amid a potential return of Trump to the White House. In January, Brussels revisited its scrutiny of major tech firms like Apple and Meta, as U.S. companies were likely to urge Trump to address what they see as overzealous EU enforcement.

Meanwhile, Trump has always expressed disapproval of the E.U.’s ‘troubling’ and ‘taxing’ the U.S. tech companies. The Trump administration called it ‘Overseas Extortion’ or ‘Unfair Fines and Penalties.’

A source told FT, “Further targeting US tech firms will heighten transatlantic tensions and provoke retaliatory actions and, ultimately, it's Member States and European businesses that will bear the cost."

Apple stock rose 1.05% to close at $223.85 on Thursday, meanwhile Meta dropped 1.37% to close at $602.58.