The European Union’s approach to regulating tech giants under the Digital Markets Act (DMA) has taken a surprising turn, as Apple and Meta are set to avoid immediate sanctions despite failing to fully comply with the legislation by the upcoming deadline of June 26, 2025.

According to a recent report by Euronews, the European Commission has opted for a more measured stance, prioritizing ongoing dialogue over automatic financial penalties for these high-profile companies. This decision marks a notable shift in the enforcement of the DMA, a landmark regulation designed to curb the dominance of Big Tech and ensure fair competition in the digital marketplace.

While the DMA empowers the EU to impose fines of up to 10% of a company’s global annual revenue for non-compliance, the Commission appears to be exercising caution in its initial enforcement phase. Euronews notes that this leniency is intended to foster cooperation rather than confrontation, allowing Apple and Meta time to align their practices with the stringent requirements of the law. For industry insiders, this raises questions about the EU’s commitment to enforcing its own rules and whether such flexibility might undermine the DMA’s intended impact.

A Strategic Pause or a Sign of Weakness?

Apple, a designated “gatekeeper” under the DMA, has faced scrutiny for its App Store policies, which critics argue restrict competition by limiting developers’ ability to direct users to alternative payment methods. Similarly, Meta has been under the spotlight for its data practices and advertising models, which some claim do not fully adhere to the DMA’s transparency and user consent mandates. Yet, despite these concerns, the European Commission’s decision to delay sanctions suggests a preference for negotiation over immediate punitive action, as highlighted by Euronews.

This approach contrasts sharply with earlier reports of hefty fines imposed on both companies in April 2025, when Apple was penalized €500 million and Meta €200 million for prior violations of EU digital rules. Those penalties, also covered by Euronews, were the first under the DMA and signaled a tougher stance at the time. The current reprieve, however, may indicate that the Commission is wary of escalating tensions with U.S.-based tech giants amid broader geopolitical considerations.

Balancing Regulation with Innovation

For the tech industry, the EU’s latest move could be interpreted as a double-edged sword. On one hand, it provides breathing room for Apple and Meta to adapt their business models without the immediate threat of crippling fines. On the other hand, it risks setting a precedent that other gatekeepers might exploit, potentially delaying the broader cultural shift the DMA seeks to achieve in digital markets, a concern echoed in industry discussions reported by Euronews.

Moreover, this development comes at a time when the EU is grappling with its own technological competitiveness on the global stage. The decision to avoid sanctions may reflect an underlying tension between enforcing strict regulations and fostering an environment where innovation can thrive. As the deadline approaches, all eyes will be on how Apple and Meta respond to this olive branch and whether the European Commission’s gamble on dialogue over discipline pays off in the long run.