Latest news with #MargretheVestager
Euronews
a day ago
- Business
- Euronews
Apple and Meta to escape sanctions for failing to meet digital rules
US tech giants Apple and Meta will not face sanctions immediately for failure to meet obligations under the EU's digital rulebook, an EU spokesperson told Euronews. In April, the Commission fined Apple €500 million and Meta €200 million for non-compliance with the Digital Markets Act (DMA) and gave both companies 60 days to bring their practices in line with EU rules. That grace period ends on 26 June, after which they risk periodic penalty payments. According to the spokesperson, financial penalties will not be applied automatically but only after the Commission conducts a preliminary analysis and shares its findings with the two tech giants as part of an ongoing exchange process. Apple was fined €500 million for preventing developers from directing users to alternative offers or content outside its platform—an action deemed contrary to DMA rules. Meta received a €200 million fine for its "pay or consent" model, which the Commission found problematic. The model forces users to either consent to the use of their personal data for targeted advertising or pay for an ad-free subscription—limiting user choice. In response, Meta introduced a revised version of its personalised advertising model in November 2024, which uses less personal data. The Commission is still evaluating this system while continuing its discussions with the company. Compared to past antitrust enforcement, the fines issued in April were relatively modest. Under former EU Competition Commissioner Margrethe Vestager, tech giants were subject to more substantial penalties. In April, EU officials explained that the lower fines reflected the short duration of the violations since the DMA implementation started in 2023 and the Commission's current focus on achieving compliance rather than punishing breaches. US digital services have been drawn into the trade war that has been escalating between the US and the EU since mid-March. In response to US tariffs, Commission President Ursula von der Leyen has threatened to impose a tax on digital advertising revenues. Meanwhile, a report by the US Trade Representative, published in early April, labelled EU digital regulations as a barrier to US exports. The DMA is designed to prevent dominant digital platforms from abusing their market power. It aims to open up digital ecosystems controlled by Big Tech and ensure users enjoy real freedom of choice online. The foreign ministers of France, Germany, and the United Kingdom - collectively known as the E3 - will meet with Iranian Foreign Minister Abbas Araghchi in Geneva to discuss Iran's nuclear program in Geneva on Friday. While the EU has historically played a key role in negotiations with Iran, it seems unlikely to participate in the formal talks. When asked by Euronews whether EU foreign policy chief Kaja Kallas would participate in the talks, a European Commission spokesperson gave no clear confirmation. 'We have always expressed our openness to dialogue and negotiation. When such dialogue occurs, we will inform you,' the spokesperson said, leaving open the possibility of a last-minute invitation. Before the E3-Iran meeting, the European ministers are expected to meet with Kallas at Germany's permanent mission in Geneva however – a move that highlights the EU's continued efforts to coordinate and facilitate diplomacy, even if indirectly. Brussels has long played a central role in the Iran nuclear negotiations, particularly through the High Representative for Foreign Affairs in the broader EU+3 format – which once included other countries such as the United States, Russia and China. Under the 2015 Joint Comprehensive Plan of Action (JCPOA), the UN-brokered nuclear agreement aimed at lifting sanctions in exchange for Iran's compliance with nuclear obligations, the EU served as a key facilitator and guardian of the agreement's implementation. Under the previous administration of US President Donald Trump, Washington pulled out of the JCPOA. The upcoming talks are expected to revive dialogue in light of the escalating conflict and persuade Iran to provide credible guarantees that its nuclear program remains exclusively civilian in nature. However, the influence of the European parties has waned in recent months. The last E3-Iran meeting was held in January, shortly before Trump assumed office. Subsequent indirect US-Iran talks, brokered by Oman, failed to yield results, with the sixth planned round cancelled after the Israeli military strikes on Iran. Although not directly involved this time, the EU has played a behind-the-scenes role as a diplomatic facilitator, attempting to bridge divides among European countries and even between Europe and the US. The EU's presence in the talks has visibly diminished since the tenure of former High Representative Federica Mogherini, who was a prominent architect and staunch defender of the 2015 deal. Despite its limited visibility, the EU hopes that its coordinating efforts can still shape the outcome of the talks or at least keep the door open for renewed multilateral diplomacy on Iran's nuclear file.
Yahoo
16-05-2025
- Business
- Yahoo
Microsoft Could Settle EU Antitrust Probe by Mid-June
Microsoft (NASDAQ:MSFT) is seeking to defuse EU antitrust scrutiny by offering Office suites without Teams at a reduced price and has drawn the European Commission's request for public feedback on its proposed commitments. Warning! GuruFocus has detected 3 Warning Sign with MSFT. Under the plan, Microsoft would sell versions of Office 365 and related productivity bundles without Teams, let customers switch to Teams-free suites mid-contract, enhance interoperability for rival communication apps, and guarantee data portability out of Teams; most obligations run for seven years, while interoperability and portability commitments extend to ten years. The EC said interested parties have until mid-June to submit their views, reflecting its June 2024 statement of objections that accused Microsoft of abusing its dominant position in SaaS productivity apps since April 2019, following Slack's original 2020 complaint. Shares were little changed in premarket trading, trading flat at recent levels. The move follows earlier reports that Microsoft could avoid a hefty EU fine after unpacking its latest offer, and underscores management's aim to balance regulatory concessions without diluting its product bundle strategy. EU competition chief Margrethe Vestager has signaled that these commitments, if approved, would settle the formal investigation opened in July 2023, but stakeholder feedback will shape any final order. For investors, the proposed remedy could remove a major overhang on Microsoft's valuation in Europe, where cloud and Office subscription growth are core drivers of its double-digit revenue gains. With Azure and AI strategy already cementing long-term growth, resolving the Teams bundling case would help ensure continued momentum in Microsoft's largest non-U.S. market. Investors will watch for the EC's decision after the consultation period closes in the coming weeks. GuruFocus's latest 12-month consensus price target for Microsoft sits at $503.52, implying an 11.1% upside from current levels. The high estimate of $650 signals that some analysts see as much as a 43% rally over the next year, while the low target of $423 suggests limited downside of about 7%. This article first appeared on GuruFocus.
Yahoo
16-05-2025
- Business
- Yahoo
Microsoft Could Settle EU Antitrust Probe by Mid-June
Microsoft (NASDAQ:MSFT) is seeking to defuse EU antitrust scrutiny by offering Office suites without Teams at a reduced price and has drawn the European Commission's request for public feedback on its proposed commitments. Warning! GuruFocus has detected 3 Warning Sign with MSFT. Under the plan, Microsoft would sell versions of Office 365 and related productivity bundles without Teams, let customers switch to Teams-free suites mid-contract, enhance interoperability for rival communication apps, and guarantee data portability out of Teams; most obligations run for seven years, while interoperability and portability commitments extend to ten years. The EC said interested parties have until mid-June to submit their views, reflecting its June 2024 statement of objections that accused Microsoft of abusing its dominant position in SaaS productivity apps since April 2019, following Slack's original 2020 complaint. Shares were little changed in premarket trading, trading flat at recent levels. The move follows earlier reports that Microsoft could avoid a hefty EU fine after unpacking its latest offer, and underscores management's aim to balance regulatory concessions without diluting its product bundle strategy. EU competition chief Margrethe Vestager has signaled that these commitments, if approved, would settle the formal investigation opened in July 2023, but stakeholder feedback will shape any final order. For investors, the proposed remedy could remove a major overhang on Microsoft's valuation in Europe, where cloud and Office subscription growth are core drivers of its double-digit revenue gains. With Azure and AI strategy already cementing long-term growth, resolving the Teams bundling case would help ensure continued momentum in Microsoft's largest non-U.S. market. Investors will watch for the EC's decision after the consultation period closes in the coming weeks. GuruFocus's latest 12-month consensus price target for Microsoft sits at $503.52, implying an 11.1% upside from current levels. The high estimate of $650 signals that some analysts see as much as a 43% rally over the next year, while the low target of $423 suggests limited downside of about 7%. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
25-04-2025
- Business
- Forbes
The EU AI Act: How Businesses Using AI Can Avoid New Fees
BRUSSELS, BELGIUM - MARCH 25: EU Commissioner for A Europe Fit for the Digital Age - Executive Vice ... More President Margrethe Vestager talks to media about non-compliance investigations against Alphabet, Apple and Meta under the Digital Markets Act (DMA) in the Berlaymont, the EU Commission headquarter on March 25, 2024 in Brussels, Belgium. Today, the Commission has opened non-compliance investigations under the Digital Markets Act (DMA) into Alphabet's rules on steering in Google Play and self-preferencing on Google Search, Apple's rules on steering in the App Store and the choice screen for Safari and Meta's "pay or consent model". The Commission suspects that the measures put in place by these gatekeepers fall short of effective compliance of their obligations under the DMA. () Meta and Apple are the first companies to get hit with multi-million fees for breaking the Digital Markets Act. The DMA is a regulation imposed by the European Commission aimed at stopping the largest tech platforms from using unfair practices with third-party providers and consumers' rights. While DMA focuses on promoting a fair competition and avoiding preferential companies serving as gatekeepers, the EU Artificial intelligence Act will affect a multitude of businesses using AI. The EU AI Act applies to any organization, regardless of location, that markets, uses or benefits from AI systems within the EU. The Act was passed the on August 1, 2024, and will fully come into effect on August 2, 2026. Similar to the General Data Protection Regulation that went into effect in 2018, the EU AI Act demands that businesses identify, monitor and classify the use of AI within their business operations. To avoid hefty fines businesses need to implement the regulation before it fully comes into effect. The EU AI Act divides AI systems into four risk categories—minimal, limited, high, and unacceptable—each with its own set of obligations. Unacceptable risk systems, such as social scoring or manipulative AI targeting vulnerable groups, are outright banned. High-risk systems, which include AI in critical infrastructure, employment, healthcare, and law enforcement, face strict requirements: pre-market conformity assessments, ongoing monitoring, and mandatory registration in an EU database. This also applies to businesses headquartered outside the EU if their AI systems are accessible to EU users or their outputs are used within the EU. Non-compliance can result in fines of up to €35 million or 7% of global annual revenue, whichever is higher—paralleling the severity of GDPR penalties. As a new regulation, there are new compliance challenge businesses face: Businesses must establish robust governance frameworks, document AI system development and deployment, and ensure ongoing risk management. High-risk systems require clear documentation, human oversight mechanisms, and explainability features. Companies must ensure the data used to train and operate AI systems is accurate, representative, and secure. Compliance is not a one-off exercise; it requires ongoing monitoring and reporting throughout the AI system's lifecycle. Governance platforms and compliance partners focus on helping any business, from enterprises to startups, to monitor, identify, classify and ensure that AI is built in accordance to the new EU AI Act. Most services include an AI governance platform designed to help businesses achieve and maintain EU AI Act compliance. Some services may include: The first step before engaging with a compliance partner is to check how the EU AI Act may affect your business or department. While governance platforms are providing their own compliance checkers, the Future of Life non-profit provides a free to use EU AI Act compliance checker that may help you identify areas in need of compliance. Once there is clear identification of risk areas, working with a compliance partner or governance platform will help ensure compliance readiness ahead of the deadline. They offer a blend of technology, expertise and strategic guidance—helping organizations assess risk, implement controls, foster a culture of responsible AI and remain resilient in the face of new regulation.
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Business Standard
23-04-2025
- Business
- Business Standard
Apple fined $570 million and Meta $228 million for breach of EU law
Apple was fined 500 million euros ($570 million) on Wednesday and Meta 200 million euros, as European Union antitrust regulators handed out the first sanctions under landmark legislation aimed at curbing the power of Big Tech. The EU fines could stoke tensions with U.S President Donald Trump who has threatened to levy tariffs against countries that penalise US companies. They follow a year-long investigation by the European Commission, the EU executive, into whether the companies comply with the Digital Markets Act that seeks to allow smaller rivals into markets dominated by the biggest companies. Apple said it would challenge the EU fine. "Today's announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free," Apple said in an emailed statement. Meta also criticised the EU decision. "The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards," it said in an emailed statement. "This isn't just about a fine; the Commission forcing us to change our business model, effectively imposing a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service." The fines are modest compared to the penalties meted out by the previous EU antitrust chief Margrethe Vestager during her term. Sources, speaking on condition of anonymity, have said this is due to the short period of the breaches, a focus on compliance rather than sanctions and a desire to avoid possible retaliation from Trump. PAY-OR-CONSENT MODEL The EU competition watchdog said Apple must remove technical and commercial restrictions that prevent app developers from steering users to cheaper deals outside the App Store. It said Meta's pay-or-consent model introduced in November 2023 breached the DMA. The model gives Facebook and Instagram users who consent to be tracked a free service that is funded by advertising revenues. Alternatively, they can pay for an ad-free service. Meta is discussing with the EU a new version introduced in November last year. The companies have two months to comply with the orders or risk daily fines. Apple avoided a fine in a separate investigation into its browser options on iPhones after making changes that allow users to switch to a rival browser or search engine more easily. Regulators said these comply with the DMA and closed the investigtion on Wednesday. The iPhone maker was still charged with breaching DMA rules on the grounds it hindered users from sideloading, a practice that involves downloading alternative app stores and apps from the web. Regulators criticised Apple's conditions, which include a new fee called Apple's Core Technology Fee, saying these serve as a disincentive for developers to use alternative app distribution channels on its mobile operating system iOS. The EU regulator also dropped Meta's Marketplace's designation as a DMA gatekeeper because the number of users fell below the required threshold. "We have taken firm but balanced enforcement action against both companies, based on clear and predictable rules. All companies operating in the EU must follow our laws and respect European values," EU antitrust chief Teresa Ribera said. EU lawmaker Andreas Schwab urged the Commission to maintain its investigations against Google's lucrative adtech business and Elon Musk's X and not delay decisions. "There can be no leeway in enforcement as this may also impact the importance of competition policy in general," he said, adding a decision that was apparently linked to trade policy issues was "dangerous for the whole European Union construction". Reuters had flagged the EU decisions on Apple and Meta last month.
