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Meta Appeals to Trump Administration Amid Impending EU Antitrust Fine
Social media conglomerate Meta, led by Mark Zuckerberg, is reportedly appealing to the Trump administration for intervention as the tech giant anticipates a substantial penalty from the European Union (EU) due to alleged breaches of its stringent antitrust regulations. This move comes as EU regulators prepare to enforce rules designed to curb the power of major technology firms.
Facing Potential Billion-Dollar Fine
Regulators at the European Commission, the EU’s antitrust enforcer, are preparing to impose a significant fine on Meta, potentially ranging from hundreds of millions of dollars to over $1 billion, according to reports. Meta is also expected to receive a formal cease-and-desist order outlining required modifications to its practices to achieve regulatory compliance.
Executives Seek US Intervention
Seeking to mitigate or entirely avert these penalties, Meta executives have reportedly urged US trade representatives from the Trump administration to challenge the European Union’s regulatory endeavors, as reported by the Wall Street Journal, citing informed sources.
Meta’s Defense: Discrimination Against American Firms
A Meta spokesperson stated that the issue extends beyond mere financial penalties. They argued that the Commission is attempting to disadvantage successful American companies solely due to their origin, while allegedly overlooking similar practices by Chinese and European competitors.
Announcement Delayed Amid US-EU Trade Tensions
The announcement of the fine against Meta was anticipated possibly later this week; however, news outlets have reported that Theresa Ribera, the EU’s top competition official currently in the US, has postponed the announcement until her return. Earlier this year, in February, Zuckerberg himself reportedly advocated for US opposition to European regulations during meetings with American officials.
Zuckerberg’s Ties to Trump Administration
Zuckerberg’s alignment with Trump has become increasingly apparent, including meetings and the appointment of Dana White, a close Trump associate and UFC President, to Meta’s board. While historically critical of Big Tech companies, Trump has consistently voiced his opposition to the EU’s practice of imposing substantial fines on American firms. He has previously characterized these penalties as “overseas extortion” and threatened countermeasures amidst ongoing trade disputes with the EU.
Digital Markets Act (DMA) at the Forefront
The Digital Markets Act (DMA), which took effect in 2023, establishes stringent competition regulations for Meta and six other companies designated as digital gatekeepers. These include:
- Apple
- Google parent Alphabet
- Amazon
- Booking.com
- TikTok parent ByteDance
- Microsoft
Apple is also anticipated to face fines, possibly in conjunction with Google, as part of the initial wave of penalties under the DMA targeting major US tech corporations.
EU’s Approach: Balancing Compliance and Diplomacy
Reports suggest that EU officials were initially prepared to implement more moderate fines, aiming to encourage adherence to the law without provoking strong opposition from the Trump administration.
“Pay or Consent” Model Under Scrutiny
The European Commission has focused on Meta, regarding allegations of compelling users into a controversial “pay or consent” model for advertisements on Instagram and Facebook. EU officials maintain that users should have the option to access Meta’s platforms free of charge without consenting to personalized advertising.
Timeline of Charges
Preliminary charges against Meta were announced last year.
Meta Highlights Regulatory Overreach
In a publicly released compliance report last month, Meta stated that despite attempts to comply with the DMA’s regulations, they ‘continued to receive further demands exceeding the explicit provisions of the law’.
Meta’s Top Policy Official Seeks US Support
Joel Kaplan, Meta’s chief policy officer, stated last month that the company ‘would not hesitate’ to seek assistance from the Trump administration in response to the EU regulatory actions. Kaplan argued, “When companies face differential and discriminatory treatment, it’s crucial to bring this to the attention of that company’s national government.”
Zuckerberg’s Advocacy for US Tech
Independently, Zuckerberg himself advocated for Trump to support American tech firms facing EU fines during a January interview on The Joe Rogan Experience podcast.
Apple Also Faces DMA Fines
Last year, Apple became the first company to face charges for DMA violations, stemming from allegations of impeding rival app developers from directing users to services beyond its own App Store ecosystem. The anticipated EU fine would penalize Apple for this specific infraction.