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Brussels introduces "mitigating factors" in its blow to Apple and Meta: limits fines to 500 and 200 million amid trade war and after Trump's threats

Updated

In the first case, the sanction is related to the App Store, and in the second, to the 'consent or payment' advertising model. Both have been delayed for weeks due to the complex geopolitical context and negotiations with the US

European Commission president Ursula von der Leyen.
European Commission president Ursula von der Leyen.AP

The European Commission has fined Apple and Meta with 500 and 200 million, respectively, for violating the new Digital Services Act (DMA). Brussels has introduced "mitigating factors" in the sanction, resulting in a significantly lower amount than speculated in recent days in the EU capital. This all occurs amid a trade war with the US, following Donald Trump's threats and Brussels delaying infringement processes for weeks due to the complex geopolitical context.

The EU regulation states that fines under the DMA can reach up to 10% of the companies' global turnover, which in Apple's case would result in a maximum fine of over 30 billion euros, and just under 15 billion for Meta. These figures were not considered, as the fines amount to less than 0.2% of that global turnover. The Commission tries to separate these processes and the fine amount from the trade war, but it seems evident that Brussels' caution is at least partly related to this situation.

Regarding these "mitigating factors," Brussels points out, for example, "the seriousness, duration, and recurrence of the violation." "The Commission has also considered that this violation decision is the first violation decision under the DMA as a mitigating factor," emphasize EU sources, who refuse to provide a formula for calculating the fine. "They just have to be proportionate," they add.

"According to the DMA, app developers distributing their apps through Apple's App Store must be able to inform customers for free about alternative offers outside the App Store, direct them to those offers, and allow them to make purchases. The Commission has found that Apple fails to meet this obligation. Due to a series of restrictions imposed by Apple, app developers cannot fully benefit from alternative distribution channels outside the App Store," states Brussels' communication on the fine to the Cupertino-based company.

As for the parent company of Facebook and Instagram, the EU points to the "binary advertising model of 'Consent or payment'." The DMA establishes that users who do not give their consent "must have access to a less personalized but equivalent alternative," which is not the case.

"Apple and Meta have violated the DMA by implementing measures that reinforce the dependence of companies and consumers on their platforms. As a result, we have taken firm yet balanced actions to enforce the law against both companies, based on clear and predictable rules," summarized the Vice President of the European Commission for a Clean, Just, and Competitive Transition, Teresa Ribera.

"Commission's Attack on Apple"

Just minutes after the fines were announced, Apple stated that it will appeal the 500 million fine to the Court of Justice of the European Union. The fine is "another example of how the European Commission unfairly attacks Apple with a series of decisions harmful to the privacy and security of our users, detrimental to our products, and forcing us to offer our technology for free," said a company representative in a statement reported by Efe.