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Investing.com -- Apple (NASDAQ:AAPL) and Meta Platforms (NASDAQ:META) are set to receive moderate fines from European Union (EU) antitrust regulators, according a Reuters report on Monday. The fines are expected due to alleged violations of significant rules designed to curtail their influence.
Both tech giants have been under the scrutiny of the European Commission since last year. The investigation revolves around potential breaches of the Digital Markets Act, a legislation that seeks to regulate the power of major digital companies. The violations of this act could result in companies being fined up to 10% of their global annual sales.
The exact amount of the fines for Apple and Meta Platforms is yet to be disclosed. However, the fact that they are described as "modest" suggests they may not reach the maximum limit set by the Digital Markets Act.
The European Commission’s investigation into these alleged breaches is part of a broader effort to regulate big tech companies and their influence on digital markets. This includes ensuring fair competition and preventing the abuse of market power.
The Digital Markets Act is a key tool in this regulatory effort. It aims to create a fair and competitive digital market by setting rules and restrictions for large online platforms, also known as "gatekeepers". These gatekeepers, due to their size and influence, have the potential to control access to large segments of the digital market.
Apple and Meta Platforms, due to their significant presence in the digital market, fall under the definition of gatekeepers. The alleged violations of the Digital Markets Act by these companies have thus attracted the attention of EU antitrust regulators.
The imposition of fines on Apple and Meta Platforms signals the EU’s commitment to enforcing the rules of the Digital Markets Act and ensuring a level playing field in the digital market. It also serves as a warning to other digital companies to comply with these rules or face financial penalties.
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