Apple and Meta Platforms are expected to pay small fines for allegedly violating historic regulations meant to limit their influence, people with direct knowledge of the matter said on Monday
TakeAway Points:
- Apple and Meta Platforms are set to face modest fines for allegedly breaching landmark rules aimed at reining in their power.
- The EU antitrust enforcer is focused on making sure the companies comply with the law rather than sanctioning them, the sources said, explaining the rationale for modest fines.
- Meanwhile, Apple is getting ready to undergo a significant software revamp later this year that will alter the appearance of the operating systems and the user interface of the iPhone, iPad, and Mac.
EU antitrust demands modest fines
Both companies have been in the European Commission’s crosshairs since last year for potential breaches of the Digital Markets Act, which could cost companies as much as 10% of their global annual sales.
The act, which became law in May 2023, seeks to make it easier for people to move between competing online services like social media platforms, internet browsers and app stores, allowing smaller companies to compete with Big Tech.
The EU antitrust enforcer is focused on making sure the companies comply with the law rather than sanctioning them, the sources said, explaining the rationale for modest fines.
Other reasons are the short duration of the alleged violations—the DMA came into force in 2023—and the geopolitical climate, they said.
U.S. President Donald Trump in a memorandum last month threatened to impose tariffs against countries that impose fines on U.S. companies. The EU has denied picking on U.S. tech giants.
The sources said a final decision on the size of the fines has not yet been taken and the situation could still change. A decision is expected this month, in line with what EU antitrust chief Teresa Ribera said in February.
In a compliance report published last week, Meta said that despite its concerted efforts to comply with EU regulation, it has continued to receive demands from regulators that go beyond what is written in the law.
Apple’s DMA compliance report dated March 7 reiterated its argument that changes imposed by the law bring greater risks to users and developers, including new avenues for malware, fraud and scams.
Apple preparing for a major software overhaul
Apple is preparing a major overhaul of its software, due later this year, which will change the look of the operating systems and the interface of the iPhone, iPad and Mac, Bloomberg News reported on Monday, citing people familiar with the effort.
The revamp, which is loosely based on Vision Pro’s software, would include a style update of icons, menus, apps, windows and system buttons, the report said. Vision Pro is Apple’s mixed-reality headset.
The potential software overhaul comes a week after the iPhone maker launched a new iPad Air and MacBook Air with artificial intelligence features to boost the appeal of its devices.
The company is planning to simplify the way users navigate and control their devices as part of the push, the Bloomberg report said.
Apple plans to highlight the new software at the company’s Worldwide Developers Conference in June, and a key goal of the overhaul is to make its different operating systems look similar and more consistent.
