Investing.com-- The European Union is set to impose minimal fines on Apple (NASDAQ:AAPL) and Meta Platforms (NASDAQ:META) under its Digital Markets Act next week in a bid to avoid worsening tensions with U.S. President Donald Trump, the Financial Times reported on Friday.
Apple will be fined and ordered to revise its App Store rules over antitrust concerns, while Meta will be fined and will be ordered to change its “pay or consent” model, the FT report said, citing people familiar with the discussions.
EU regulators will also close another investigation into Apple over the company’s design of its web browser choice screen, with no more sanctions on tap.
Under the DMA, companies can face up to 10% of their global turnover in penalties, which would have resulted in steep fines for the two.
But the EU is aiming for fines well below that threshold, the FT report said, as the bloc’s DMA is new and still open to being challenged in court.
The EU will also aim to avoid further tensions with the U.S., given that Trump has attacked the EU penalties in the past and even referred to them as “overseas extortion.”
Trump has also warned that he will impose trade tariffs on countries that levy digital services taxes against American firms.
Trump is spared to announce reciprocal tariffs against the EU next week, a move that could potentially sour relations with the bloc, given that European policymakers have vowed retaliation over any tariffs.