Apple and Meta Platforms, Inc. are facing the likelihood of regulatory fines. However, the blow could be less than feared due the policies of President Donald Trump.
Apple and Meta Platforms are both expected to face monetary penalties from the European Union for breaches of its Digital Markets Act next week but the fines will be minimal as the EU looks to avoid a spat with the Trump administration, the Financial Times reported on Friday, citing people familiar with the matter.
The Digital Markets Act designates companies including Apple and Meta as running "gatekeeper" platforms. The companies have to comply with certain conditions such as sharing data with rivals and making their services interoperable with competitors.
If officials determine that a company has broken the EU's Digital Markets Act, it could be fined up to 10% of its worldwide revenue. However, Apple and Meta are likely to face penalties far below that level, according to the report.
The European Commission didn't immediately respond to a request for comment on Friday.
Trump said earlier this year that he would consider tariffs in response to "digital services taxes, fines, practices, and policies" imposed on American companies. Some of the biggest European economies, including France, have passed taxes on revenue that multinational tech firms reap within their territory.
Apple will likely be fined and ordered to revise its App Store rules over an investigation into whether it prevented app developers from directing consumers to offers elsewhere, while Meta will be hit with a fine and ordered to change its model which requires European users to pay a monthly fee for ad-free versions of its platforms if they wish to opt out of targeted advertising based on their data, the report said.
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