US-EU trade war game! The European Union has fined Apple Inc. (AAPL.US) and Meta (META.US) 700 million euros based on the DMA.

The European Commission recently fined tech giants Apple Inc. (AAPL.US) 500 million euros and Meta (META.US) 200 million euros, accusing both companies of violating the EU Digital Markets Act (DMA). This move could escalate trade tensions with the Trump administration. The penalties come as the US and EU are negotiating to avoid the US imposing tariffs on the EU, potentially further straining the already fragile US-EU relationship. EU regulatory agencies pointed out that Apple Inc. violated DMA obligations related to anti-steering, while Meta violated obligations in DMA to offer consumers the choice of using services with less personal data. The European Commission warned that if the two companies do not comply within 60 days, they could face "periodic penalty payments," with the fines possibly increasing. Executive Vice President for a Clean, Just and Competitive Transformation Teresa Ribera stated: "Apple Inc. and Meta have strengthened their platform's dependence for business users and consumers by implementing certain measures, failing to comply with the provisions of the DMA. Therefore, based on clear and foreseeable rules, we have taken firm and proportionate enforcement action against these two companies." Additionally, the European Commission decided to terminate its investigation into Apple Inc.'s obligations under DMA regarding user choice. The regulatory agency informed Apple Inc. of its preliminary opinion that the contract terms for alternative app distribution violated DMA. The European Commission also found that Meta's online intermediary service Facebook Marketplace should no longer be considered subject to DMA. In September 2023, the European Commission designated six "gatekeeper" companies under DMA for the first time - Alphabet Inc. Class C (GOOGL.US), Amazon.com, Inc. (AMZN.US), Apple Inc., Meta, Microsoft Corporation (MSFT.US) and Chinese tech giant ByteDance. Some products provided by these companies are subject to DMA as well as the EU Digital Services Act (DSA) regulation. DSA regulates online intermediary platforms used by millions of Europeans daily, aimed at protecting consumers and their rights in cyberspace. In November 2024, reports indicated that Apple Inc. will face the largest fine ever under EU DMA targeting large tech companies. However, the iPhone manufacturer has been working to comply with DMA regulations. In March last year, the European Commission launched investigations into potential DMA violations by Apple Inc., Alphabet Inc. Class C, and Meta. In January of this year, the European Commission is reassessing investigations into companies including Apple Inc., Meta, and Alphabet Inc. Class C.