Bloomberg Law recently featured Mandelbaum Barrett PC Partner Chris Zona in an article titled “Massive Fines for Big Tech Call EU’s DMA Fairness Into Question,” highlighting his insights on the European Union’s first major enforcement actions under the Digital Markets Act (DMA).
The European Union’s aggressive rollout of its Digital Markets Act (DMA) has arrived — and so have the fines. Apple and Meta were recently hit with combined penalties exceeding €700 million for alleged violations, ranging from anti-steering restrictions to user consent mechanics. These actions mark the EU’s first major enforcement wave under the DMA and have raised serious questions about fairness, proportionality, and global implications.
Chris Zona, a Partner in Mandelbaum Barrett’s Litigation Department, Healthcare Litigation Group, and White Collar and Criminal Defense Group, notes that “the EU’s approach here isn’t just regulatory—it’s strategic, designed to send a message to the world’s most powerful tech companies: comply, or pay.”
A veteran litigator and former in-house counsel to a Fortune 10 company, Zona brings a rare dual perspective to regulatory developments like these, having both defended companies in high-stakes litigation and led internal compliance investigations.
What Happened?
- Apple was fined €500 million for preventing app developers from directing users to alternative payment options — a direct breach of DMA rules.
- Meta was hit with a €200 million penalty for its “pay-or-consent” ad model on Facebook and Instagram, which regulators say fails to provide a real choice.
Though steep, these fines are just the beginning. The DMA allows penalties of up to 10% of a company’s global turnover for initial violations—and up to 20% for repeat offenses.
Why It Matters
This isn’t just a European regulatory issue. It signals a broader global trend toward more aggressive oversight of Big Tech, and a growing tension between European regulatory frameworks and U.S. business models.
U.S. officials and tech leaders have pushed back, with some calling the DMA protectionist. Others warn of the operational burdens it imposes on multinational companies that must now align with divergent—and sometimes shifting—regulatory regimes.
As Zona explains, “The line between regulation and retaliation is thin—and right now, it’s under a microscope.”
What Companies Should Do
- Audit EU-Facing Policies: Especially regarding data access, user consent, app store practices, and advertising structures.
- Coordinate Cross-Functional Teams: Legal, compliance, and technical staff must work in lockstep to respond quickly and effectively.
- Plan for Litigation and Policy Shifts: The DMA will continue to evolve, and legal challenges are likely to influence its future enforcement.
- Track Global Adoption: Countries like Brazil, Japan, South Korea, and India are evaluating similar laws. Regulatory alignment should be a global—not regional—priority.
The Bigger Picture
The DMA represents more than regulatory housekeeping—it’s a political and economic signal of intent. Companies that dismiss its impact risk more than fines; they jeopardize their market position and reputational standing.
Chris Zona continues to advise clients across industries on litigation strategy, crisis management, and regulatory risk. Drawing on his extensive courtroom experience and time as in-house counsel, he offers practical guidance for navigating high-stakes investigations and evolving legal frameworks. Contact Chris Zona at czona@mblawfirm.com or (212) 324-1879.
Read the full article on Bloomberg Law.