Meta, the parent company of Facebook and Instagram, is facing a substantial fine from the European Union for allegedly violating its strict antitrust regulations. According to the New York Post , the penalty could amount to hundreds of millions of dollars and may even surpass $1 billion, marking one of the most significant enforcement actions under the EU’s Digital Markets Act (DMA).

Sources close to the matter told the New York Post that the European Commission, the EU’s competition authority, is preparing to declare that Meta has failed to comply with the DMA. The law, which came into effect in 2023, imposes stringent rules on major tech firms, including Meta, Google parent Alphabet, Amazon, Apple, Booking.com, TikTok owner ByteDance, and Microsoft, to prevent monopolistic practices and ensure fair competition.

An official decision on the fine is expected as early as this week, insiders revealed. Alongside the financial penalty, the European Commission is set to issue a “cease-and-desist” notice, which will outline necessary changes Meta must make to align with the DMA.

Representatives from Meta and the European Commission have not yet responded to requests for comment, per the New York Post.

The scrutiny on Meta follows concerns over its “pay or consent” advertising model, introduced in 2023. Under this system, users could either pay approximately $14 per month for an ad-free experience or consent to having their personal data used for targeted advertising. EU officials argue that this structure effectively coerces users into sharing their data, failing to offer a truly equivalent alternative, a claim the European Commission raised in preliminary charges against Meta last July.

Read more: FTC Targets Meta’s Market Power, Calls Zuckerberg to Testify

Meta has previously defended its compliance efforts, but in a recent report, the company stated that it continues to receive demands from regulators that “go beyond what is written in the law.”

The enforcement action against Meta comes amid a broader crackdown on Big Tech under the DMA. Apple is also expected to face a fine for alleged violations, with an announcement potentially coming this week or next, according to sources cited by the New York Post.

If found guilty, companies can face fines of up to 10% of their global revenue, with repeat offenses pushing penalties up to 20%. In June 2024, Apple became the first company charged under the DMA for allegedly restricting app developers from directing customers outside its App Store, with reports emerging in November that a fine was likely.

Source: The New York Post