EU Fines Apple and Meta 💸

Hey there! 👋

There is big news out of Europe! Apple and Meta have been hit with major fines of €500 million and €200 million, respectively, under a new EU law called the Digital Markets Act (DMA).

Let’s dive into what’s happening and how law firms could be affected.

Don't have time for the full scoop? No worries, we've got you covered with a quick summary: click here

What did Apple and Meta do? 🤔

Both companies were found non-compliant with key parts of the Digital Markets Act, a major new law designed to limit the dominance of Big Tech.

🍏 Apple’s Case

Apple made it harder for app developers to tell customers about cheaper deals outside of Apple's App Store.

In short, developers were not allowed to fully direct users to alternative websites or payment methods, even if it meant a better deal for customers. Apple imposed technical and commercial restrictions, making it extremely hard for developers to do this.

👉 Bottom line: Users missed out on better deals, and developers remained locked into Apple’s ecosystem. The Commission said Apple’s restrictions were not necessary or proportionate and ordered them to remove these barriers.

📱Meta’s Case

Meta introduced a “Consent or Pay” model. EU users were forced to either:

• Consent to full personal data tracking for personalised ads

• Pay a monthly fee to avoid it.

While that might sound like a fair choice, the EU disagreed.

Here’s why:

• Under the DMA, users must be offered an alternative service that uses less of their personal data without forcing them into an expensive paywall.

• Meta’s model didn’t offer a less intrusive data option unless users paid.

• Users weren't given the ability to freely consent without facing pressure or penalties.

👉 The Commission said Meta was effectively pushing users into giving up their data, violating their rights to privacy and choice.

Why is this a problem? 😤

The Digital Markets Act was created because the EU believes big tech companies are "gatekeepers" that can squeeze out competition and harm consumers.

When:

• Developers can't advertise cheaper options.

• And users are forced to trade privacy for access...

...it means less innovation, less consumer choice, and a less competitive market. ❌

There’s also a geopolitical angle:

American companies like Apple and Meta have accused the EU of targeting US firms unfairly. Some US officials, including President Trump, have expressed anger, claiming the EU is penalising US success to boost European competitors. 

However, the EU insists the DMA is about consumer rights, not trade wars.

How could law firms be affected? 👩‍⚖️

More demand for regulatory advice - Tech companies will need more help navigating the Digital Markets Act and avoiding big fines. This could mean more work for law firms, especially in competition, data privacy, and tech regulation.

Litigation - Apple and Meta are likely going to challenge the fines, and lawyers would be involved in helping them dispute these decisions in the EU court.

🗞 Other news

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Nomura has agreed to buy Macquarie’s US and European public asset management business for $1.8bn in cash. The deal, expected to close by the end of 2025, will boost Nomura’s assets under management to around $770bn, with a bigger focus outside Japan. Nomura’s CEO said the move is part of a push to shift away from volatile revenue streams like trading and move towards stable, global growth. For Macquarie, the sale helps sharpen its focus on private markets.

Tech Firms Face Knife Crime Fines 🚔

Tech companies could be fined up to £60,000 every time they fail to remove knife crime-related posts under new UK government rules. This expands on existing measures that fine individual tech executives up to £10,000. The move comes amid soaring knife crime rates and growing criticism that tech platforms aren't doing enough to protect young people.

I hope you enjoyed this article. See you next week! 👋

Written by Chirag Morar