The European Union is delaying its decision on penalizing Apple and Meta. This move comes as EU trade officials prepare to meet with their US counterparts. The Wall Street Journal reports that the delay has raised concerns among some EU lawmakers. They worry that the decision might be influenced by politics.
The EU was set to announce cease-and-desist orders against both companies. At least one of them was informed about the impending announcement. The decision to delay was made just before Maroš Šefčovič, the EU’s trade commissioner, met with US officials in Washington. This meeting marked the first such gathering since President Donald Trump’s 90-day tariff halt.
What’s Behind the Delay?
A European Commission spokesperson said the technical work on the cases is done. However, no specific timeline has been given for the final decision. The spokesperson added that the commission is working towards a decision in the short term.
The issue revolves around the Digital Markets Act (DMA). This EU law aims to give smaller companies a fairer chance against tech giants. Meta is facing scrutiny over its ad-free subscription model. Apple is being investigated for its App Store rules. These rules prevent developers from directing customers to pay outside the store.
The EU started investigating both cases in March 2024. Companies that violate the DMA can be fined up to 10% of their global revenue. However, the actual fines might be lower. The cease-and-desist orders are expected to have a more significant impact.
Previous Statements and Expectations
Earlier this month, Teresa Ribera, the EU’s antitrust chief, told lawmakers that the European Commission wouldn’t meet its March deadline for deciding on the Apple and Meta cases. This statement came just before Trump’s team announced a tariff pause.
The penalties against both companies are still expected to move forward. However, the exact timeline is unclear. The European Commission has previously stated that it will protect its regulatory powers. This stance is despite pressure from Trump and Big Tech supporters. They have been lobbying for the EU to relax its rules for US companies.
Source: engadget
