In April 2023, both Apple and Meta were penalized by the European Union for not fulfilling their obligations under the Digital Markets Act (DMA). Apple faced a significant fine of €500 million, while Meta was fined €200 million. The companies were also given a deadline of 60 days to comply, which ends on June 26.

However, the EU has clarified that there will be no immediate sanctions on either company after this deadline. Typically, failure to comply with the DMA would result in financial penalties, potentially amounting to 5% of a company’s average daily global turnover for each day of non-compliance. Interestingly, the EU has indicated that, before imposing any sanctions, it will carry out a preliminary analysis of the situation.

Both Apple and Meta assert that they have made substantial changes to ensure compliance with the law. Apple, for instance, has revised its App Store policies, allowing developers to direct users to external payment systems, albeit with new associated fees. Meta has also adjusted its subscription model, permitting user tracking even when they opt out of personalized ads, though using less personal data.

Nevertheless, the EU must still determine if these adjustments genuinely meet the intended regulatory objectives. Apple, in particular, has faced scrutiny in the past for making minimal changes that regulators deemed insufficient. The DMA, or Digital Markets Act, aims to regulate major tech companies, referred to as “gatekeepers,” to foster fair competition within the EU.

Apple, with its App Store, and Meta, with its services like Facebook and WhatsApp, fall under this category. The DMA requires that Meta obtain explicit user consent before combining data across its various services, reflecting the legislation’s focus on transparency and user control.