{"id":1532,"date":"2025-04-28T15:37:36","date_gmt":"2025-04-28T12:37:36","guid":{"rendered":"https:\/\/sgklegal.gr\/?p=1532"},"modified":"2025-04-28T15:46:40","modified_gmt":"2025-04-28T12:46:40","slug":"apple-and-meta-in-the-eu-commission-crosshairs","status":"publish","type":"post","link":"https:\/\/sgklegal.gr\/en\/apple-and-meta-in-the-eu-commission-crosshairs\/","title":{"rendered":"Apple and Meta in the European Commission&#8217;s crosshairs: A comment on the implementation of the DMA in practice"},"content":{"rendered":"<p data-start=\"44\" data-end=\"138\"><a href=\"https:\/\/daily.nb.org\/arthrografia\/apple-kai-meta-sto-stochastro-tis-evropaikis-epitropis-ena-scholio-gia-tin-efarmogi-tis-dma-stin-praxi\/\" target=\"_blank\" rel=\"noopener\">Article published at NB Daily (in Greek)<\/a><\/p>\n<p class=\"\" data-start=\"44\" data-end=\"138\"><strong data-start=\"44\" data-end=\"138\">The First Fines Imposed by the European Commission under the New Digital Markets Act (DMA)<\/strong><\/p>\n<p class=\"\" data-start=\"140\" data-end=\"703\">On April 23, 2025, the European Commission issued two decisions imposing monetary fines of <strong data-start=\"231\" data-end=\"247\">\u20ac500 million<\/strong> on Apple and <strong data-start=\"261\" data-end=\"277\">\u20ac200 million<\/strong> on Meta, following compliance investigations under Regulation (EU) 2022\/1925 (Digital Markets Act \u2013 \u201cDMA\u201d).<br data-start=\"385\" data-end=\"388\" \/>In particular, the Commission examined Apple\u2019s existing &#8220;steering&#8221; conditions within the App Store and Meta\u2019s &#8220;Consent or Pay&#8221; model, which was in effect from March to November 2024.<br data-start=\"570\" data-end=\"573\" \/>These decisions represent the <strong data-start=\"603\" data-end=\"635\">first instances of sanctions<\/strong> imposed under the DMA, which became fully applicable in March 2024.<\/p>\n<h3 class=\"\" data-start=\"710\" data-end=\"730\">What is the DMA?<\/h3>\n<p class=\"\" data-start=\"731\" data-end=\"1032\">The DMA was adopted with the objective of ensuring <strong data-start=\"782\" data-end=\"806\">fair digital markets<\/strong>, focusing on the conduct of major platforms acting as <strong data-start=\"861\" data-end=\"876\">Gatekeepers<\/strong>, and is part of the EU&#8217;s broader legislative framework for regulating digital services, alongside Regulation (EU) 2022\/2065 (Digital Services Act \u2013 \u201cDSA\u201d).<\/p>\n<p class=\"\" data-start=\"1034\" data-end=\"1245\">The DMA sets out a series of obligations and prohibitions specifically for large online platforms designated as &#8220;Gatekeepers.&#8221;<br data-start=\"1160\" data-end=\"1163\" \/>According to Article 3(1) DMA, an undertaking is designated as a Gatekeeper if it:<\/p>\n<ul data-start=\"1246\" data-end=\"1548\">\n<li class=\"\" data-start=\"1246\" data-end=\"1300\">\n<p class=\"\" data-start=\"1248\" data-end=\"1300\">(a) has a significant impact on the internal market;<\/p>\n<\/li>\n<li class=\"\" data-start=\"1301\" data-end=\"1421\">\n<p class=\"\" data-start=\"1303\" data-end=\"1421\">(b) provides a core platform service which constitutes an important gateway for business users to reach end users; and<\/p>\n<\/li>\n<li class=\"\" data-start=\"1422\" data-end=\"1548\">\n<p class=\"\" data-start=\"1424\" data-end=\"1548\">(c) enjoys an entrenched and durable position in its operations, or it is foreseeable that it will do so in the near future.<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"1550\" data-end=\"1843\">On September 6, 2023, the European Commission designated six companies as Gatekeepers: <strong data-start=\"1637\" data-end=\"1696\">Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft<\/strong>.<br data-start=\"1697\" data-end=\"1700\" \/>Additionally, on April 29, 2024, the Commission designated Apple&#8217;s <strong data-start=\"1767\" data-end=\"1777\">iPadOS<\/strong> (its operating system for tablets) as a Gatekeeper under the DMA.<\/p>\n<h3 class=\"\" data-start=\"1850\" data-end=\"1924\">Apple \u2013 Violation of the \u201cAnti-Steering\u201d Obligation: \u20ac500 Million Fine<\/h3>\n<p class=\"\" data-start=\"1925\" data-end=\"2237\">In the context of Apple&#8217;s compliance review, the European Commission assessed whether business users (i.e., natural or legal persons using the App Store to offer products or services) and end users (consumers) could benefit from advantages offered through alternative distribution channels outside the App Store.<\/p>\n<p class=\"\" data-start=\"2239\" data-end=\"2281\">Under Article 5(4) DMA, a Gatekeeper must:<\/p>\n<ul data-start=\"2282\" data-end=\"2517\">\n<li class=\"\" data-start=\"2282\" data-end=\"2379\">\n<p class=\"\" data-start=\"2284\" data-end=\"2379\">Allow business users to promote offers under different conditions to end users, free of charge.<\/p>\n<\/li>\n<li class=\"\" data-start=\"2380\" data-end=\"2443\">\n<p class=\"\" data-start=\"2382\" data-end=\"2443\">Enable business users to steer end users towards such offers.<\/p>\n<\/li>\n<li class=\"\" data-start=\"2444\" data-end=\"2517\">\n<p class=\"\" data-start=\"2446\" data-end=\"2517\">Allow the completion of transactions outside the Gatekeeper&#8217;s platform.<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"2519\" data-end=\"3050\">However, the Commission found that Apple <strong data-start=\"2560\" data-end=\"2621\">prevents business users from directly informing consumers<\/strong> about such alternative and cheaper offers, thus depriving consumers of real choice.<br data-start=\"2705\" data-end=\"2708\" \/>Apple failed to demonstrate that these technical restrictions were necessary and proportionate.<br data-start=\"2803\" data-end=\"2806\" \/>Therefore, the Commission ordered Apple to <strong data-start=\"2849\" data-end=\"2901\">remove all technical and commercial restrictions<\/strong> and <strong data-start=\"2906\" data-end=\"2938\">refrain from similar conduct<\/strong> in the future, imposing a fine of <strong data-start=\"2973\" data-end=\"2989\">\u20ac500 million<\/strong>, considering the gravity and duration of the non-compliance.<\/p>\n<h3 class=\"\" data-start=\"3057\" data-end=\"3127\">Meta \u2013 Violation of the Free Consent Obligation: \u20ac200 Million Fine<\/h3>\n<p class=\"\" data-start=\"3128\" data-end=\"3389\">In this case, the European Commission reviewed Meta\u2019s &#8220;Consent or Pay&#8221; model, where Facebook and Instagram users in the EU were asked to choose between consenting to the combination of their personal data or paying a monthly subscription for an ad-free service.<\/p>\n<p class=\"\" data-start=\"3391\" data-end=\"3412\">According to the DMA:<\/p>\n<ul data-start=\"3413\" data-end=\"3648\">\n<li class=\"\" data-start=\"3413\" data-end=\"3518\">\n<p class=\"\" data-start=\"3415\" data-end=\"3518\">Gatekeepers must request users&#8217; consent for combining personal data across services (Article 5(1) DMA).<\/p>\n<\/li>\n<li class=\"\" data-start=\"3519\" data-end=\"3648\">\n<p class=\"\" data-start=\"3521\" data-end=\"3648\">Where consent is refused, they must offer a <strong data-start=\"3565\" data-end=\"3613\">less personalized but equivalent alternative<\/strong> (Article 5(2) DMA and Recital 37).<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"3650\" data-end=\"4001\">The Commission concluded that Meta&#8217;s &#8220;Consent or Pay&#8221; model, applied between March and November 2024 (prior to the introduction of a new model in November), <strong data-start=\"3807\" data-end=\"3825\">did not comply<\/strong> with these obligations.<br data-start=\"3849\" data-end=\"3852\" \/>Users were not given a true opportunity to <strong data-start=\"3895\" data-end=\"3928\">freely exercise their consent<\/strong>, as their refusal was tied to the requirement of paying for the service.<\/p>\n<h3 class=\"\" data-start=\"4008\" data-end=\"4059\">Conclusion \u2013 Implications for Service Providers<\/h3>\n<p class=\"\" data-start=\"4060\" data-end=\"4263\">The Commission\u2019s decisions against Apple and Meta <strong data-start=\"4110\" data-end=\"4178\">mark the beginning of a new era of enhanced regulatory oversight<\/strong> over major digital platforms in the European Union.<br data-start=\"4230\" data-end=\"4233\" \/>Strict enforcement of the DMA:<\/p>\n<ul data-start=\"4264\" data-end=\"4819\">\n<li class=\"\" data-start=\"4264\" data-end=\"4348\">\n<p class=\"\" data-start=\"4266\" data-end=\"4348\">Establishes binding standards for safeguarding user freedom of choice and privacy.<\/p>\n<\/li>\n<li class=\"\" data-start=\"4349\" data-end=\"4456\">\n<p class=\"\" data-start=\"4351\" data-end=\"4456\">Raises the level of compliance required from multinational corporations operating in the European market.<\/p>\n<\/li>\n<li class=\"\" data-start=\"4457\" data-end=\"4570\">\n<p class=\"\" data-start=\"4459\" data-end=\"4570\">Creates a precedent for future enforcement actions under the DMA, enhancing legal certainty and predictability.<\/p>\n<\/li>\n<li class=\"\" data-start=\"4571\" data-end=\"4669\">\n<p class=\"\" data-start=\"4573\" data-end=\"4669\">Fosters a competitive and innovative environment, reducing the risk of user &#8220;lock-in&#8221; phenomena.<\/p>\n<\/li>\n<li class=\"\" data-start=\"4670\" data-end=\"4819\">\n<p class=\"\" data-start=\"4672\" data-end=\"4819\">For technology companies, <strong data-start=\"4698\" data-end=\"4721\">monetization models<\/strong> and <strong data-start=\"4726\" data-end=\"4755\">data management practices<\/strong> must now be reconsidered under the light of these developments.<\/p>\n<\/li>\n<\/ul>\n<p><strong data-start=\"4826\" data-end=\"4904\">For the Law Office &#8220;Stergios Konstantinou &amp; Associates \u2013 SGKLegal&#8221;<\/strong><\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"312\"><strong data-start=\"4907\" data-end=\"4932\">Stergios Konstantinou<\/strong><br data-start=\"4932\" data-end=\"4935\" \/>Attorney at Law \u2013 Advanced LL.M. (IP &amp; ICT Law)<br data-start=\"4982\" data-end=\"4985\" \/>CIPP\/E, CIPM, FIP<\/td>\n<td width=\"312\">\n<p class=\"\" data-start=\"5004\" data-end=\"5041\"><strong data-start=\"5004\" data-end=\"5017\">Eva Pitsi<\/strong><br data-start=\"5017\" data-end=\"5020\" \/>Trainee Lawyer, LL.M.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Article published at NB Daily (in Greek) The First Fines Imposed by the European Commission under the New Digital Markets Act (DMA) On April 23, 2025, the European Commission issued two decisions imposing monetary fines of \u20ac500 million on Apple and \u20ac200 million on Meta, following compliance investigations under Regulation (EU) 2022\/1925 (Digital Markets Act [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":1530,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,219,217,218,162],"class_list":["post-1532","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-en","tag-apple-and-meta","tag-dma-compliance-legal-advise","tag-dma-compliance-legal-services","tag-dma-fine","tag-sgklegal-en"],"_links":{"self":[{"href":"https:\/\/sgklegal.gr\/en\/wp-json\/wp\/v2\/posts\/1532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgklegal.gr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgklegal.gr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgklegal.gr\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/sgklegal.gr\/en\/wp-json\/wp\/v2\/comments?post=1532"}],"version-history":[{"count":1,"href":"https:\/\/sgklegal.gr\/en\/wp-json\/wp\/v2\/posts\/1532\/revisions"}],"predecessor-version":[{"id":1533,"href":"https:\/\/sgklegal.gr\/en\/wp-json\/wp\/v2\/posts\/1532\/revisions\/1533"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgklegal.gr\/en\/wp-json\/wp\/v2\/media\/1530"}],"wp:attachment":[{"href":"https:\/\/sgklegal.gr\/en\/wp-json\/wp\/v2\/media?parent=1532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgklegal.gr\/en\/wp-json\/wp\/v2\/categories?post=1532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgklegal.gr\/en\/wp-json\/wp\/v2\/tags?post=1532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}