The European Commission is backing away from issuing the harshest possible penalties against Apple and Meta, signaling a quieter enforcement strategy for its Digital Markets Act (DMA).
While the companies are still under investigation for potential violations, Brussels appears intent on softening the financial blow—an approach meant to avoid sparking transatlantic tensions, particularly with Donald Trump stepping up his criticism of European regulators.
The DMA empowers the Commission to fine so-called digital “gatekeepers” up to 10% of their global annual revenue for violations—rising to 20% for repeat offenders.
But sources familiar with the matter told the Financial Times that the EU will push forward with enforcement while keeping penalties modest. This reflects a strategic recalibration that, while regulatory in intent, is also deeply political. One official described the shift as an effort to avoid “a rerun of the transatlantic trade tensions”.
Modest penalties, high-stakes diplomacy
Rather than risk a repeat of previous trade confrontations with the U.S., the EU is opting for a tempered rollout of its new digital rules.
In a February 2025 memorandum, U.S. president Trump described EU efforts as “overseas extortion” aimed at weakening American tech companies. Meta CEO Mark Zuckerberg echoed those sentiments in a January 11 appearance on The Joe Rogan Experience, noting that U.S. tech firms had paid over €30 billion in EU penalties over the past two decades.
With political pressure mounting, European regulators appear to be choosing compliance and diplomacy over confrontation.
Meta’s $1B Ad Model Fine Looms Amid Regulatory Recalibration
Timing, however, complicates that narrative. Previous reports said that the European Commission was preparing a fine of up to $1 billion against Meta over its controversial “pay or consent” advertising model. The system, rolled out in late 2023, requires users to either accept targeted ads or pay a monthly fee to avoid tracking—€9.99 on the web and €12.99 on mobile at launch.
That model came under heavy scrutiny for allegedly violating the DMA’s data minimization principles. In its 2024 preliminary assessment, the Commission stated: “Meta’s ‘pay or consent’ model may not provide a real alternative in case users do not consent, thereby not achieving the objective of preventing the accumulation of personal data by gatekeepers.”
While Meta lowered the monthly price to €5.99 in response to criticism, privacy advocates argue the core issue remains unchanged. Critics say users are still being nudged into trading personal data for access to basic digital services.
Whether the $1 billion fine materializes in full remains uncertain. Meta is expected to challenge the decision, a move that would extend the legal fight into the next year. The possibility of such a large fine sitting alongside broader efforts to ease regulatory tension illustrates the EU’s conflicting imperatives: showing it means business while avoiding a diplomatic mess.
Apple’s browser tweaks let it sidestep formal penalties
While Meta remains in the spotlight, Apple has quietly moved to the edge of enforcement. After modifying its iPhone browser selection process to align with DMA requirements, the company is reportedly set to avoid fines and formal sanctions entirely. The Commission is expected to close its probe into Apple’s compliance as early as next week.
The browser investigation was one of several that the EU froze in January as part of a broader regulatory strategy reset. The Commission paused DMA investigations into Apple, Meta, and Google, signaling a moment of reflection after months of mounting political and legal challenges.
Reputation at stake: Can the EU enforce without provoking?
The Commission’s decision to avoid harsh financial penalties—despite holding the legal authority to do so—has drawn criticism from digital rights groups and some EU lawmakers. They warn that watering down enforcement risks undermining the DMA’s credibility before it even gains traction.
Past fines underscore the contrast. In November 2024, Meta was hit with a €797.72 million penalty for tying Facebook Marketplace to its core platform, a case where the Commission argued that the company unfairly leveraged its dominance. And in May 2023, Meta received a record €1.2 billion GDPR fine for transferring user data to the U.S. without adequate protections.
Those actions sent a strong message. But now, with the DMA positioned as Europe’s most ambitious tech regulation to date, the concern is that soft penalties will make compliance optional for digital gatekeepers with deep pockets.
According to Reuters reporting earlier this month, the Commission is leaning toward modest fines for both Apple and Meta, despite confirmed or suspected DMA breaches. These smaller penalties, however, may not satisfy critics who argue the law’s success hinges on credible enforcement backed by proportionate consequences.
The situation highlights the EU’s increasingly complicated position: assert digital sovereignty without alienating global partners. For now, Brussels appears determined to keep its regulatory house in order—without inviting another political firestorm.
