Latest news with #DMA
Canada News.Net
25 minutes ago
- Business
- Canada News.Net
Meta risks antitrust fines as it resists more EU rule changes
BRUSSELS, Belgium: Meta is holding firm on its controversial pay-or-consent model, a move that could lead to fresh antitrust charges and steep daily fines from the European Commission, according to sources familiar with the matter. Despite warnings in June from European Union regulators, the tech giant has no plans to offer further changes to the model, which allows users to pay to avoid data tracking. Unless circumstances shift, people with direct knowledge said, Meta is not expected to modify its approach any further. The EC had threatened daily fines after concluding that Meta's current adjustments did not fully comply with the bloc's Digital Markets Act (DMA). The company already received a 200 million euro (US$234 million) fine in April for violating the DMA between its introduction in November 2023 and November 2024. Meta made limited modifications in late 2024 to reduce the use of personal data in targeted ads. However, those changes triggered continued scrutiny from Brussels, which argues that the model still violates rules designed to curb Big Tech dominance. New antitrust charges are expected in the coming weeks, sources said, followed by daily fines of up to five percent of Meta's global average daily revenue, starting from June 27—though a final decision is still pending. Meta shares fell 1.7 percent in mid-session trading after the Reuters report was published. When contacted, Meta declined to comment but referred to earlier statements, saying the company believes it is in compliance with the DMA and offers European users more choice than the law requires. Meta also accused the European Commission of unfairly targeting its business model.
The Verge
6 hours ago
- Business
- The Verge
Where are the iPhone's WebKit-less browsers?
It's been 16 months since a DMA ruling allowed iOS developers like Google and Mozilla to use their own browser engines in the EU, so… where are they? According to the Open Web Advocacy (OWA) — a nonprofit group of software engineers that advocates for the open web — Apple continues to place technical and financial restrictions on WebKit-alternative iOS browser engines that effectively stifle competition. OWA says these barriers include insufficient testing tools outside of the US, hostile legal terms, and forcing browser developers to create entirely new apps to ship their own engines, causing developers to lose their existing European user base. Instead of allowing Google, for example, to simply update its existing Chrome browser with a Blink engine, Apple's rules require a brand new app for the EU audience, resetting the user count to zero. Developers would then have to maintain two separate browser implementations. Mozilla told The Verge last year that it was disappointed by Apple's restrictions, describing them as 'a burden' on independent browser providers. 'Apple's proposals fail to give consumers viable choices by making it as painful as possible for others to provide competitive alternatives to Safari,' said Mozilla spokesperson Damiano DeMonte. 'This is another example of Apple creating barriers to prevent true browser competition on iOS.' Apple added support for non-WebKit browsers in iOS 17.4 to appease DMA rules that aim to prevent tech giants from disadvantaging third-party browser engines, but the OWA alleges that Apple's restrictions mean it is 'not in effective compliance with the DMA.' 'Ensuring other browsers are not able to compete fairly is critical to Apple's best and easiest revenue stream,' the OWA says. The group notes that Safari brings in $20 billion per year in search engine revenue from Google, accounting for 14-16 percent of Apple's annual operating profit, and that it's set to lose $200 million per year for every 1 percent of browser market share that Safari loses. Outside of the EU, Apple is also facing pressure from UK regulators to allow developers to use alternative browser engines in iOS, following an investigation that found both Apple and Google were 'holding back' mobile browser innovation.
Express Tribune
20 hours ago
- Business
- Express Tribune
Capital wins e-parking dispute
A lower court in Islamabad on Sunday upheld the decision by the Directorate of Municipal Administration (DMA) and Metropolitan Corporation Islamabad (MCI) to cancel the e-parking contract awarded to AJCL company, terming the termination fully legal and in accordance with administrative procedures. The court dismissed AJCL's appeal, reinforcing the government's commitment to transparency, legal supremacy, and public interest. Senior advocate Nazir Jawad, representing CDA and DMA, presented what the court described as "solid legal evidence" to defend the cancellation of the contract. The contract with AJCL was officially revoked in June 2025 after the company was found to be in serious breach of multiple clauses, including financial irregularities and failure to implement a cashless system for parking. The CDA spokesperson told the media that multiple First Information Reports (FIRs) were also filed by both the DMA and concerned citizens at local police stations against the company. AJCL subsequently challenged the contract termination, requesting that parking sites not be reclaimed and that the proposed re-auctioning of smart parking sites be halted. However, the court rejected all such claims, declaring them baseless and upholding the DMA's actions as legally sound and procedurally proper. Legal experts and civic stakeholders alike have praised the decision, calling it a major step toward enforcing transparency, upholding the rule of law, and improving urban services in Islamabad. "This judgment empowers us to take stronger, more effective steps for enhancing public amenities," said a senior CDA official. "This verdict is a testament to our commitment to good governance, transparency, and merit-based decisions," said Chairman Capital Development Authority (CDA) and Chief Commissioner Islamabad, Muhammad Ali Randhawa in a statement on Sunday. The verdict has been hailed by CDA officials as a precedent-setting move under the leadership of Member Administration Talat Mahmood and Deputy DG Enforcement and Director DMA Dr Anam Fatima. The CDA reiterated its commitment to modernising urban infrastructure, promising that no lapses in governance or public service delivery would be tolerated.
Business Insider
3 days ago
- Business
- Business Insider
Meta Thumbs its Nose to EU Charges After Refusing to Alter Ad Model
U.S. tech giant Meta Platforms (META) is standing up to Europe by refusing to make any changes to its advertising model, despite the threat of being slapped with daily fines by regulators. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Digital Compliance According to a Reuters report, Meta is believed to very 'unlikely' to offer up any alterations to its pay-or-consent model despite European pleas. Under the model, EU users of Facebook and Instagram have a choice between consenting to personal data combination for personalized advertising or paying a monthly subscription for an ad-free service. Earlier this year, the Commission found that this model is not compliant with its Digital Markets Act, as it did not give users the required specific choice to opt for a service that uses less of their personal data. As such, Meta, run by Mark Zuckerberg, was fined €200 million ($234 million) in April by the EU and warned that it would face daily fines if it did not make changes. Daily fines for not complying with the DMA can be as much as 5% of a company's average daily worldwide turnover. It is why legal and regulatory risk is such a key challenge for U.S. tech firms such as Meta. Closed for Business The Reuters report states that Meta will not propose additional changes unless circumstances change. This stance will likely result in new EU antitrust charges in the coming weeks. Meta has already blasted the EU and its Digital Markets Act by claiming that its crackdown means that Europe is 'closed for business.' It has also raised concerns about the EU's new AI Act, which has outlined a set of 'high-risk' uses, such as biometrics and facial recognition, or AI used in domains like education and employment. App developers will have to register their systems and meet risk and quality management obligations to gain EU access. Violations could draw fines of up to 35 million euros ($41 million), or 7% of a company's global revenue. Is META a Good Stock to Buy Now? On TipRanks, META has a Strong Buy consensus based on 42 Buy and 4 Hold ratings. Its highest price target is $918. META stock's consensus price target is $735.28 implying a 2.73% upside.
Indian Express
3 days ago
- Business
- Indian Express
Meta won't tweak pay-or-consent model further despite risk of EU fines, sources say
Meta Platforms is very unlikely to offer more changes to its pay-or-consent model, meaning it is almost certain to be hit by fresh EU antitrust charges and hefty daily fines, people with direct knowledge of the matter said on Friday. The European Commission last month warned Meta of possible daily fines after being told that the U.S. social media giant would only make limited changes to its model to comply with the European Union's Digital Markets Act. The Facebook owner was hit with a 200-million-euro ($234 million) fine in April after the EU antitrust enforcer said its pay-or-consent model breached the DMA from when it was introduced in November 2023 to November 2024. Meta had tweaked the model in November 2024 to use less personal data for targeted advertising, which prompted additional EU scrutiny and the subsequent Commission comments in June. The DMA seeks to curb the power of Big Tech via a list of dos and don'ts. Meta will not propose additional changes unless circumstances change, the people with direct knowledge of the matter said on Friday. That in turn will likely result in fresh EU antitrust charges in the coming weeks and daily fines following shortly, of as much as 5% of Meta's average daily worldwide turnover starting from June 27, one of the sources said, although a final decision has yet to be made. Meta shares were down 1.7% in mid-session after the Reuters story was published. Meta declined to comment and pointed to previous statements where it said it is confident that it complies with the DMA, that its range of choices to Europeans go beyond the DMA's requirements and that the Commission is discriminating against its business model. The Commission declined to comment. ($1 = 0.8553 euros)
