Tech giants Apple (AAPL) and Meta (META) are set to face modest fines from the European Union (EU) for breaking the Digital Markets Act (DMA), according to Reuters. Introduced in 2023, the DMA aims to curb the power of tech giants and give users more freedom to switch between online services.
The European Commission is expected to announce the fines by the end of the month. While the DMA allows fines of up to 10% of a company’s global revenue, the EU seems to be focusing more on getting these companies to comply with the rules than delivering heavy penalties.
Why the EU Is Softening Its Stance
The EU’s softer stance on fines comes down to a few key factors. Firstly, the DMA is still new, and regulators may be giving companies time to adjust before enforcing stricter penalties.
Secondly, there is growing pressure from outside the EU. The U.S. recently complained that the EU’s rules unfairly target American tech firms. Similar concerns came up when the EU introduced the Digital Services Act, as U.S. officials said it placed more demands on American companies. This pressure may be causing EU regulators to act more carefully.
Apple and Meta Voice Concerns About New Regulations
Both Apple and Meta admit they are having a tough time following the new rules. Just last month, Meta warned the European Union that it would seek help from President Trump if it continues to impose harsh penalties on the company. Meanwhile, in its March 7 DMA compliance report, Apple repeated that the law’s changes could put users and developers at risk by allowing more malware, fraud, and scams.
These ongoing regulatory battles show the growing pressure on tech giants in the EU as officials push for fair competition and consumer protection.
Is AAPL Stock a Good Buy?
Turning to Wall Street, AAPL has a Moderate Buy consensus rating based on 18 Buys, 11 Holds, and four Sells assigned in the last three months. At $250.95, the average Apple price target implies a 10.32% upside potential. Apple stock has lost 9% year-to-date.
Is META a Good Stock to Buy?
Overall, Wall Street has a Strong Buy consensus rating on META stock, based on 44 Buys, three Holds and one Sell. The average META price target of $764.61 implies about 28% upside from current levels.
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