Meta companies like Meta (Facebook, Instagram’s parent company) and Apple are not as straightforward as the common man is seen. These companies are making every effort to end the competition. This is the reason that in Europe, taking strict action against Apple and Meta on Wednesday, a fine of crores of dollars has been imposed. They were found to be violating the new law digital market account (DMA) made to maintain competition in the digital world. This is the first time any company has been punished under this law.
According to the European Commission, Apple will have to pay a fine of 500 million euros (about 570 million dollars) and Meta 200 million euros (about $ 230 million). The aim of this law is that big tech companies do not impose their conditions on users and small businesses by misusing their domination. Let us know that one such law was going on in India for one year, but now the government has postponed it. There is a possible agreement with the US regarding tariffs with the US.
What is allegation on Apple
Apple is accused that he did not give the app developers the freedom to give direct information about the discounts and offers to his customers. That is, the app developers present in the app store had to work within Apple’s restrictions, due to which the customers were deprived of cheap options.
At the same time, Mark Zuckerberg’s company Meta implemented a system in which the user gets only two options- either let their personal information use for advertising, or pay money and subscribe to the ad-free version. According to European law, companies have to get their consent before connecting individual data to the user, and if no one agrees, it should get a ‘low personged but equal level’ service.
America vs Europe: Tech companies strict
Even though there is tension between the US and Europe on issues like trade, tax and Ukraine War, the thinking of both continents looks the same in terms of limiting the strength of tech companies. Whether it is Google, Amazon or now Apple and Meta, all are being tightened.
In America too, Google has recently lost two big anti-trust cases. A case is also going on against Meta in Washington, in which he is accused of buying and suppressing small contestants.
Trump administration warning and response
Although the investigation on Apple and Meta started before the Trump administration came to power, but now a warning is being given by the US. In February, the White House issued a statement saying that if Europe targets American companies, retaliation could be taken.
Meta described this decision as an ‘tariff -like attack’ on American companies. The company’s Global Affairs Head, Joel Caple, said, “The European Commission is deliberately stuck in the way of American companies, while European and Chinese companies are being exempted.” There has been no comment on this from Apple.
Now what next?
Both these companies will have to follow these orders within 60 days, otherwise they may have to face more stringent fines. Another decision against Apple has also come up, in which he is accused of blocking the iPhone and other devices to block the second app store. However, another investigation has been discontinued as Apple is now giving users more options to remove preinstold apps.
Meta is alleged that he is selling confidentiality by making a ‘premium facility’, while the law says that the user should get uniform but less private service for free.
European Commission Executive Vice President Teresa Ribera said, “Apple and Meta have implemented a system that has increased the dependence of users and traders on these companies. But every company working in Europe will have to respect our laws.”
