EU imposes substantial penalties on Apple and Meta, disregarding warnings from Trump regarding antitrust practices
Subtitle: A Look at the Latest Trade Deal Talks and Regulatory Actions Affecting Tech Companies
Disclaimer: Warning! This article contains candid, uncensored insights about politics, business, and technology. Reader discretion is advised.
The EU recently dished out a hefty fine to Apple and Meta under the Digital Markets Act, leaving the tech titans with a bitter taste. The Big Money Show panelists react to President Donald Trump and Italian Prime Minister Giorgia Meloni's recent press conference on tariffs.
The EU imposed a 500 million euros ($570 million USD) fine on Apple and 200 million euros ($228 million USD) on Meta for reportedly violating the rules of the DMA, a law aimed at leveling the tech market for smaller players. Some experts fear this is just another attempt by the EU to hobble American businesses while letting Chinese and European companies flout the rules.
Meta's Joel Kaplan, the company's chief global affairs officer, blasted the EU Commission, stating, "This isn't just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service." He surprisingly shared his concern that the move could even hurt European businesses and economies, as personalized advertising takes a hit.
Apple, too, voiced its discontent, claiming it spent vast resources and made numerous changes to comply with the EU's requirements, with no thank-yous from the European Commission. On the contrary, they argue the Commission keeps altering the goalposts every step of the way.
President Trump previously took a firm stance against overseas extortion, signing a memorandum to safeguard American companies and innovators from similar practices in February. The memorandum hinted at utilizing tariffs to combat such moves by foreign governments.
In July, the EU issued preliminary charges against Meta for allegedly violating the DMA by forcing users to adopt a restrictive "pay or consent" advertising model. Since then, Meta has tweaked its subscription model to comply with the EU Courts, repricing it cheaper and offering a free version with less personalized ads.
Interestingly, the EU still isn't satisfied with Meta's revised plans and has called on the company to throw in a new compliance model.
Meanwhile, the EU is also up in arms against Apple, accusing it of restricting app developers from steering customers towards cheaper options outside the App Store. The EU has pointed the finger at Apple's Core Technology Fee, arguing it cripples app developers and hinders users from downloading alternatives from outside the store.
The EU antitrust chief, Teresa Ribera, shared her sentiment, stating, "We have taken firm but balanced enforcement action against both companies based on clear and predictable rules. All companies operating in the EU must follow our laws and respect European values."
Meta and Apple must make changes based on the EU's demands in the next two months, or they could face daily fines. The White House has yet to comment on the ongoing trade deal negotiations between the EU and the US.
Stay tuned as we continue to monitor the unfolding trade deal talks between the EU and the US and the ongoing regulatory battle between Big Tech and European authorities. The race to strike a favorable trade deal amidst these regulatory skirmishes is heating up, with potential consequences for global markets.
Investment in the tech sector could be affected by ongoing regulatory battles between Big Tech companies like Apple and Meta, and European authorities, as both firms must make changes based on the EU's demands within two months or face daily fines. The potential consequences for global markets, including taxes and economies, are uncertain due to the ongoing trade deal negotiations between the EU and the US.
President Trump previously signed a memorandum to safeguard American companies and innovators from similar foreign practices, hinting at utilizing tariffs as a means of combat. Thus, the future of US-EU trade deals concerning tech companies remains uncertain amidst escalating regulatory actions.
