For some time now it has been clear that the era of the absolute power of the big tech is over. But with the historical fine that the European Union has inflicted to two giants of technology such as Apple and Meta, the clash now risks going further, given the current difficult relationships between the old continent and the USA of Trump. The accusation of violation of the Digital Markets Act, the legislation entered into force in 2022 with the aim of strengthening competition in the digital market and limiting the power of the so -called “gatekeeper” of the Tech sector, resulted in a heavy fine for the two companies: 500 million euros for Apple and 200 per goal. And beyond the figure, which for companies that combine hundreds of billions every year are almost a buffet, this is what this sentence represents that now opens new scenarios in the world economic world. Just as the duties storm rages.
The decisions, announced on Wednesday by the European Commission, represent a first, decisive step in the application of the DMA, considered one of the most ambitious attempts globally to regulate the activity of the large digital platforms. The legislation aims to prevent dominant companies from unilaterally impose rules and conditions for users and businesses, hindering free competition. According to Brussels, Apple has broken the rules by limiting the possibilities for app developers to communicate freely with its users regarding promotions, discounts and alternative offers compared to those available on the App Store. This practice prevented consumers from being informed about potentially cheaper options and has strengthened Apple control over digital transactions carried out through its platforms. Meta, for its part, has been sanctioned for the introduction of a “permit or pay” model, which obliges users to choose whether to accept the use of their personal data for the customization of advertising, or pay a subscription to use versions without Facebook and Instagram insertions. This system, according to the Commission, violates the principles of equity and transparency provided by the DMA, imposing a forced and potentially discriminatory choice to users.
As mentioned, the penalties arrive in a moment of growing tension between the European Union and the United States in terms of trade, duties and digital regulation. Yet the Commission’s decision highlights a convergence of views between the antitrust bodies of the two sides of the Atlantic on the need to stem the power of the big tech. In the United States, in recent months, Google has also undergone important judicial defeats for abuse of dominant position in the online research and digital advertising sectors, while Meta is currently under trial in Washington for alleged anti -concrete practices related to its strategic acquisitions. Furthermore, Apple and Amazon are also currently the subject of procedures by the American authorities. However, the political problem remains. Apple, at the moment, has not issued official statements, while Meta announced the intention to challenge the EU decision. Joel Kaplan, head of the global affairs of the Mark Zuckerberg company, has severely criticized the commission, accusing it of wanting to “penalize the success of American companies” and to adopt different standards for European and Chinese companies. “This is not just a fine – Kaplan said -. The commission imposes a change of business model that is in fact, in fact, to a duty of billions of dollars on a goal, forcing us to offer a lower service”. And here is the point.
The investigations that led to the sanctions against Apple and Meta had started over a year ago, well before the current international political context dominated by the tensions related to the war in Ukraine and the renegotiation of commercial agreements between the USA and the EU. However, the political implications of European decisions are evident. In February, the White House had already reported the possibility of retaliation in the event that the European regulations – in particular the Digital Markets Act and the Digital Services Act, the latter aimed at contrasting the disinformation and illegal content online – were used to targeted American companies in a targeted way.
And the announcement of the fines could therefore further exacerbate the relationship between Brussels and Washington: the fear, expressed by some analysts, is that technological regulation becomes a new economic and diplomatic battlefield between the two powers, with potential repercussions on international trade and investments in the digital sector.