EU Lowers Apple, Meta Fines to Avoid U.S. Clash

The European Union is set to impose minimum fines on Apple and Meta, Facebook's parent company, under its Digital Markets Act (DMA) next week. This move reflects Brussels' effort to avoid escalating tensions with U.S. President Donald Trump.

According to sources told FT, Apple is expected to be fined and ordered to revise its App Store policies following an investigation into whether these rules prevent app developers from directing consumers to alternative purchasing platforms.

Regulators will also conclude another probe into Apple's browser default settings, opting not to impose additional sanctions regarding the design of the company's browser choice screen.

Meta, meanwhile, will be fined and required to modify its Pay or Consent model, which forces users to either accept data tracking or pay a subscription fee for an ad-free experience.

Under the DMA, companies found in violation could face fines of up to 10% of their global revenue, potentially amounting to billions of dollars for both firms. However, three officials stated that the European Commission aims for significantly lower penalties, given that the regulatory framework is still relatively new and could face legal challenges in court.

Brussels is attempting to enforce the DMA—designed to curb the dominance of tech giants in digital markets—without provoking a direct confrontation with Washington.

Officials noted that the newly appointed European Commission, which took office in December, is more focused on ensuring compliance by large tech firms rather than imposing multi-billion-dollar penalties.

Following a series of adjustments by Apple to comply with EU regulations, Brussels regulators are set to drop a case regarding Apple's operating system and whether it restricts users from switching browsers or search engines.

However, imposing fines of any kind on U.S. tech firms risks backlash, as Trump has previously condemned EU penalties on American companies, calling them a form of taxation and likening them to foreign extortion.

This is a critical test for the European Commission, said a source from one of the affected companies. Further targeting of U.S. tech firms will escalate transatlantic tensions, invite retaliation, and ultimately burden EU member states and businesses.

Trump has warned that countries imposing digital service taxes on U.S. firms could face tariff countermeasures.

According to a memo released last month, Trump stated that his administration would investigate taxes, regulations, and policies that hinder the growth of American companies operating abroad.

Meta previously asserted that its changes comply with EU regulators' demands and exceed EU legal requirements.

Officials noted that the planned decisions are still subject to change before their official announcement. The proposals will be presented to representatives of the EU's 27 member states on Friday, with formal fines expected to be announced next week, though the timeline remains flexible.