Latest news with #DigitalMarketsAct
4 hours ago
- Business
Apple revamps EU App Store terms to avert more fines
LONDON -- Apple has revamped its app store policies in the European Union with hopes of fending off escalating fines under the 27-nation bloc's digital competition regulations. It's a last-minute bid by the iPhone maker to avoid further charges following a 500 million euro ($585 million) penalty in April. The bloc's executive Commission punished Apple for preventing app makers from pointing users to cheaper options outside its App Store, and gave it a 60-day deadline, which expired Thursday, to avoid additional, periodic fines. The changes made by Apple will make it easier for app makers to point users to better deals on digital products and options to pay for them outside of Apple's own App Store, including other websites, apps or alternative app stores. The California company is also rolling out a two-tier system of fees to accommodate app developers that want to use alternative payments. 'The European Commission is requiring Apple to make a series of additional changes to the App Store," Apple said in a statement. "We disagree with this outcome and plan to appeal.' The commission noted Apple's announcement and 'will now assess these new business terms for DMA compliance,' referring to the EU's Digital Markets Act. The rulebook was designed to rein in the power of big tech companies under threat of hefty fines worth up to 10% of a company's global annual revenue. Among the DMA's provisions are requirements that developers inform customers of cheaper purchasing options, and direct them to those offers. Apple's restrictions preventing developers from steering users to outside payment channels had been fiercely opposed by some companies. It's the reason, for example, Spotify removed the in-app payment option to avoid having to pay a commission of up to 30% on digital subscriptions bought through iOS.
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First Post
5 hours ago
- Business
- First Post
EU warns Meta on pay-or-consent model, cites ongoing breach
The EU executive said Meta's pay-or-consent model introduced in November 2023 breached the DMA in the period up to November 2024, when it tweaked it to use less personal data for targeted advertising read more EU flag and Meta logo are seen in this illustration. File image/ Reuters Meta Platforms may face daily fines if EU regulators decide the changes it has proposed to its pay-or-consent model fail to comply with an antitrust order issued in April, they said on Friday. The warning from the European Commission, which acts as the EU competition enforcer, came two months after it slapped a 200-million-euro ($234 million) fine on the U.S. social media giant for breaching the Digital Markets Act (DMA) aiming at curbing the power of Big Tech. STORY CONTINUES BELOW THIS AD The move shows the Commission's continuing crackdown against Big Tech and its push to create a level playing field for smaller rivals despite U.S. criticism about the bloc's rules mainly targeting its companies. Daily fines for not complying with the DMA can be as much as 5% of a company's average daily worldwide turnover. The EU executive said Meta's pay-or-consent model introduced in November 2023 breached the DMA in the period up to November 2024, when it tweaked it to use less personal data for targeted advertising. The Commission has been scrutinising the changes since then. The model gives Facebook and Instagram users who consent to be tracked a free service that is funded by advertising revenues. Alternatively, they can pay for an ad-free service. The EU competition watchdog said Meta will only make limited changes to its pay-or-consent model rolled out last November. 'The Commission cannot confirm at this stage if these are sufficient to comply with the main parameters of compliance outlined in its non-compliance Decision,' a spokesperson said. 'With this in mind, we will consider the next steps, including recalling that continuous non-compliance could entail the application of periodic penalty payments running as of 27 June 2025, as indicated in the non-compliance decision.' STORY CONTINUES BELOW THIS AD Meta accused the Commission of discriminating against the company and for moving the goalposts during discussions over the last two months. 'A user choice between a subscription for no ads service or a free ad supported service remains a legitimate business model for every company in Europe - except Meta,' a Meta spokesperson said. 'We are confident that the range of choices we offer people in the EU doesn't just comply with what the EU's rules require - it goes well beyond them.' The EU watchdog dismissed Meta's discrimination charges, saying the DMA applies equally to all large digital companies doing business in the EU regardless of where they are incorporated or who their controlling shareholders are. 'We have always enforced and will continue to enforce our laws fairly and without discrimination towards all companies operating in the EU, in full compliance with global rules,' the Commission spokesperson said.
Fast Company
5 hours ago
- Business
- Fast Company
Why Apple is revamping its App Store terms in the European Union
Apple has revamped its app store policies in the European Union with hopes of fending off escalating fines under the 27-nation bloc's digital competition regulations. It's a last-minute bid by the iPhone maker to avoid further charges following a 500 million euro ($585 million) penalty in April. The bloc's executive Commission punished Apple for preventing app makers from pointing users to cheaper options outside its App Store, and gave it a 60-day deadline, which expired Thursday, to avoid additional, periodic fines. The changes made by Apple will make it easier for app makers to point users to better deals on digital products and options to pay for them outside of Apple's own App Store, including other websites, apps or alternative app stores. The California company is also rolling out a two-tier system of fees to accommodate app developers that want to use alternative payments. 'The European Commission is requiring Apple to make a series of additional changes to the App Store,' Apple said in a statement. 'We disagree with this outcome and plan to appeal.' The commission noted Apple's announcement and 'will now assess these new business terms for DMA compliance,' referring to the EU's Digital Markets Act. The rulebook was designed to rein in the power of big tech companies under threat of hefty fines worth up to 10% of a company's global annual revenue. Among the DMA's provisions are requirements that developers inform customers of cheaper purchasing options, and direct them to those offers. Apple's restrictions preventing developers from steering users to outside payment channels had been fiercely opposed by some companies. It's the reason, for example, Spotify removed the in-app payment option to avoid having to pay a commission of up to 30% on digital subscriptions bought through iOS.
Euractiv
7 hours ago
- Business
- Euractiv
Meta will only introduce limited changes to its ad model under ongoing DMA probe
On Friday the Commission said Meta will introduce only limited changes to the pay or consent advertising model it rolled out in November 2024, after it was slapped with a €200 million Digital Markets Act (DMA) fine in April. The EU's executive has been investigating Meta's switch to offering users a choice between paying the company to access ad-free versions of Facebook/Instagram or agreeing to be tracked for ads. The Commission is probing this issue because the DMA requires gatekeepers like Meta to obtain affirmative consent to such tracking. The deadline for Meta to comply with the Commission's DMA decision elapsed yesterday. However Commission spokesperson, Thomas Regnier, could not confirm whether changes Meta made to the ad model last year are sufficient to comply with the April decision in which Meta was slapped with its first DMA sanction. He added that the Commission will consider its next steps - reiterating that Meta risks daily fines from 27 June if it continues to be non-compliant. On Friday Meta told Euractiv it recently made changes to the wording and design flow that people see when being asked to choose how to access its apps. But did not provide further detail. Pay or see less personalised ads The EU's DMA investigation on Meta began back in March 2024, but in November 2024 Meta tweaked its pay or consent offer - saying users would now be able to choose between paying it a fee to access ad-free versions of its apps or gaining free access to an ad-supported version in which the ads would use less personal data for targeting. At the same time, it also reduced the fee for the ad-free option -- dropping the charge by 40%. This brought the price of monthly subscriptions for the no-ad versions of Facebook and Instagram down to €7.99 each per month. In April the Commission decided that the original version of Meta's pay or consent model, which offered a more expensive, binary choice to users, did not comply with the DMA. On Friday a Meta spokesperson accused the Commission of moving the goalposts on compliance, claiming the EU is unfairly singling out its business model for sanction. "The European Commission continues to discriminate against an American company's business model," they said. " A user choice between a subscription for a no-ads service or a free ad-supported service remains a legitimate business model for every company in Europe - except Meta," the spokesperson added. Meta's spokesperson also claimed the company has " engaged constructively with the European Commission and introduced extensive changes to address [the Commission's] ever-changing feedback". (nl)
Al Etihad
7 hours ago
- Business
- Al Etihad
Meta may face daily fines over pay-or-consent model, EU warns
27 June 2025 15:48 BRUSSELS (Reuters)Meta Platforms may face daily fines if EU regulators decide the changes it has proposed to its pay-or-consent model fail to comply with an antitrust order issued in April, they said on warning from the European Commission, which acts as the EU competition enforcer, came two months after it slapped a 200-million-euro ($234 million) fine on the US social media giant for breaching the Digital Markets Act (DMA) aiming at curbing the power of Big move shows the Commission's continuing crackdown against Big Tech and its push to create a level playing field for smaller rivals despite US criticism about the bloc's rules mainly targeting its fines for not complying with the DMA can be as much as 5% of a company's average daily worldwide EU executive said Meta's pay-or-consent model introduced in November 2023 breached the DMA in the period up to November 2024, when it tweaked it to use less personal data for targeted advertising. The Commission has been scrutinising the changes since model gives Facebook and Instagram users who consent to be tracked a free service that is funded by advertising revenues. Alternatively, they can pay for an ad-free EU competition watchdog said Meta will only make limited changes to its pay-or-consent model rolled out last November."The Commission cannot confirm at this stage if these are sufficient to comply with the main parameters of compliance outlined in its non-compliance Decision," a spokesperson said."With this in mind, we will consider the next steps, including recalling that continuous non-compliance could entail the application of periodic penalty payments running as of 27 June 2025, as indicated in the non-compliance decision."Meta accused the Commission of discriminating against the company and for moving the goalposts during discussions over the last two months."A user choice between a subscription for no ads service or a free ad supported service remains a legitimate business model for every company in Europe - except Meta," a Meta spokesperson said."We are confident that the range of choices we offer people in the EU doesn't just comply with what the EU's rules require - it goes well beyond them."The EU watchdog dismissed Meta's discrimination charges, saying the DMA applies equally to all large digital companies doing business in the EU regardless of where they are incorporated or who their controlling shareholders are. "We have always enforced and will continue to enforce our laws fairly and without discrimination towards all companies operating in the EU, in full compliance with global rules," the Commission spokesperson said.
