Following the European Union’s Digital Markets Act (DMA) non-compliance decisions imposing a €500 million fine on Apple and €200 million fine on Meta, the Information Technology and Innovation Foundation (ITIF), the leading think tank for science and technology policy, released the following statement from Joseph V. Coniglio, director of antitrust and innovation:
“With these fines, the European Commission is effectively crossing the Rubicon. Rather than enforce the DMA in a way that appreciates the good faith compliance efforts of American companies and the need for a strong transatlantic partnership, it has made clear that the DMA will be used to extract revenues from U.S. firms even as they continue striving to comply with its strictures.
“The Commission’s actions today will not be well received by the Trump administration, which has already stated that the DMA will be scrutinized as a form of unfair exploitation of American innovation. Amidst an already tense trade environment, weaponizing the DMA as a non-tariff barrier will only make it harder to reach a comprehensive U.S.-EU agreement.
“While ITIF commends the Commission for closing the investigation into Apple’s browser choice screen, its fine regarding the company’s so-called “anti-steering” policies reflects a continued obsession to dismantle Apple’s walled garden business model. Doing so overlooks the measures Apple has already taken to allow apps to utilize alternative payment service providers and the privacy and security benefits it brings for European users.
“Similarly, although the Commission has rightly taken Facebook Marketplace out from under the DMA’s microscope, fining Meta for its “consent or pay” model reflects de facto public utility regulation of the worst kind: micromanaging how the company prices its product, without any pretense of protecting competition. And, by issuing this fine while it continues to assess Meta’s new free personalized ads model, U.S. firms are on notice that the DMA negotiations will be conducted under duress rather than in good faith.
“The recent U.S.-Italy Joint Leaders Statement between President Trump and Prime Minister Meloni highlights “the importance of information technology to enabling free enterprise across the Atlantic” within a regulatory environment that is “non-discriminatory.” Yet unfortunately, Brussels is doubling down on heavy-handed regulation that targets American firms, an approach that, in the long run, will not make the West great again but will instead benefit China in its own quest for global techno-economic dominance.”
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