APPLE AND META are set to be fined by the EU this week under the new Digital Markets Act, in a move which will put a spotlight on ‘big tech’ during an intensifying trade war between the US and Europe.

Politico first reported that the European Commission is set to issue a fine on Apple and Meta, the company behind Facebook, at the end of this week. As both firms are headquartered in Ireland, it will be the state’s responsibility to collect the funds.

A government source told The Journal that they expect a decision to be made on the fine this week. European Commission officials coordinate such sanctions through the respective member states’ ambassadors and permanent representatives in Brussels.

Both fines will be the first of their kind under the act, which aims to make the sale and trading of goods and services online fairer and more accessible to all citizens in Europe.

Last year, Apple made major changes to its in-house app store, web browser and agreements with app developers in efforts to adhere to new Digital Markets Act (DMA). 

It squashed the firm’s long-running practice of creating an ‘Ecosystem’, whereby consumers can integrate their different devices using Apple’s technology – such as iMessage, AirDrop and iCloud.

US President Donald Trump has previously denounced the regulations and suggested that there would be financial consequences ìnvolved for EU member states if fines were issued. He previously said Apple was treated poorly by Europe, citing the €13bn tax case.

Fine could lead to tougher tariffs

On Wednesday, Trump is expected to unleash a wave of tariffs on European member states, claiming to want to settle a trade imbalance with the EU and make exporters in Ireland and elsewhere pay their fair share.

The European Commission is set to respond aggressively, much to the concern of the Irish government whose trade relationship with the US is drastically different to other member states, as 25% of Irish exports go to the US, compared the EU average of 8%.

A decision to fine Apple and Meta, two American tech companies with ties to the Trump administration, may fuel efforts in Washington D.C. to respond with further tariffs targeting the tech sector.

This may have even tougher consequences for Ireland, given the significant level of windfall tax receipts attributed to the corporation tax that both Apple and Meta pay.

Lobbying registers show that Apple met with staffers of European Trade Commissioner Maroš Šefčovič earlier this month, in which the Digital Markets Union was discussed. 

Speaking to Newstalk Breakfast this morning, Taoiseach Micheál Martin admitted the impending trade war “could very well” impact on the Budget, and signalled that the government will try and focus on investment on major infrastructure later this year.

“We’re going to focus our spending particularly on capital,” Martin said, pinpointing water infrastructure, housing and energy as key sectors for investment.

“That whole energy piece is key to get energy prices down,” the Taoiseach said. He added that the government wants to “accelerate offshore wind development” as one of its “long term” plans for the economy.

Additional reporting by Jane Matthews