EU plans €1 billion fine for Meta's antitrust violations

The European Union may impose a fine of €1 billion or more on Meta, the parent company of Facebook and Instagram, for violating antitrust laws. This action is part of the EU's efforts to enforce its Digital Markets Act, which sets strict competition rules for large tech companies. The European Commission is expected to conclude that Meta did not comply with these rules. The investigation should wrap up this week, with the EC announcing its decisions shortly after. The commission aims to ensure that Meta follows the regulations and will inform the company of any necessary changes. Apple might also face penalties soon as it is under scrutiny for similar violations. In the past, it was suggested that both Apple and Meta would only receive minor fines, but this view has changed. The Digital Markets Act covers major tech companies, including Google’s Alphabet, Amazon, and Microsoft. It is designed to prevent these firms from using their market power against smaller competitors. The law allows fines of up to 10 percent of a company’s global revenue for repeated violations. Meta's issues stem from its advertising model. Users are required either to pay to avoid ads or agree to let Meta use their data for targeted advertising without other options. Meta argues that the EU's compliance demands go beyond what the law requires. Former President Donald Trump has reacted to the EU's actions, threatening to impose tariffs on European companies. He believes that the EU's penalties unfairly target American companies. Lawmakers in the U.S. are seeking clarification from the EU about how it plans to enforce these laws against American firms.