Current Affairs: Passage of the Day - 25 April 2025 | Current Affairs & General Knowledge - CLAT PDF Download

Directions: Read the passage carefully and answer the questions that follow.
The European Commission has found Apple and Meta in violation of the Digital Markets Act (DMA) and has fined the companies EUR 500 million and EUR 200 million, respectively, for the violations. The Commission states that Apple has breached its anti-steering obligations under the Act, a fact which it had informed the company of back in 2024. Anti-steering is a practice where a platform restricts the business users operating on it from directing users to their own or third-party services.
As per the Commission’s press release, Apple imposes a number of obligations on app developers making it difficult for them to take full advantage of the alternative distribution channels outside Apple’s App Store to distribute their apps. Further, customers also cannot fully benefit from alternative and cheaper deals.
In Meta’s case, the Commission found issues with the company’s consent or pay model, which requires users to pay for a version of Meta without advertisements. If users do not want to pay for Meta platforms, they can give the company consent to process their data. The Commission says that this model is non-compliant with the DMA, adding that it does not give users enough choice to opt for a service that uses less of their personal data but is otherwise equivalent to the ‘personalised ads’ service. 
Key details of Apple’s anti-steering violation:
The European Commission had been in conversation with Apple for a long time. In August 2024, the company announced that it would allow EU users of Apple devices to delete the Apple App Store, Safari and other apps in compliance with DMA. Then, in November 2024, Apple released a report for the Commission’s consideration about changes it had made on both iPad OS and iOS, such as allowing developers to create alternative app marketplaces and allowing EU users to download apps directly from the developer’s website as well.
However, despite these changes, the Commission notes that Apple disincentivised developers from using these alternative channels because this requires them to comply with new business terms as well as a new fee – the Apple Core Technology Fee. “Apple also introduced overly strict eligibility requirements, hampering developers’ ability to distribute their apps through alternative channels,” it explains, adding that the company also makes it confusing for the end user to install apps using these alternative channels. As part of its decision, the European Commission has “ordered Apple to remove the technical and commercial restrictions on steering and to refrain from perpetuating the non-compliant conduct in the future.”
Concerns with Meta’s ‘Consent or Pay’ Model:
Under the Digital Markets Act, companies have to seek user permission before combining data from across different services. Further, under another EU regulation, the General Data Protection Rules (GDPR), companies cannot process people’s data for behavioural advertising, and as such, in 2023, the European Data Protection Board (EDPB) had banned Meta from processing personal data from EU users for its micro-targeting ad business.
While Meta released the ‘consent or pay’ model to tackle this restriction, in April last year, the EDPB had expressed the opinion that it is incompatible with the GDPR. The board suggested that Meta needs to create a free of charge model for users to access its services that involves less or no personal data processing.
In November last year, Meta introduced a free personalised ads model that allegedly uses less personal data. While the Commission is currently assessing this model, it has fined Meta based on the ‘consent or pay’ model that the tech giant was operating between March 2024 and November 2024.
Action against Apple in other parts of the world:
In September 2021, a United States (US) court had permanently restrained Apple from prohibiting developers from allowing customers to make purchases through mechanisms outside of Apple’s in-app purchase system. Similarly, the Competition Commission of India (CCI) said that Apple has abused its dominant position in the market for app stores in July last year. Its comment came in the context of a complaint alleging that Apple implemented anti-steering measures and blocked developers from telling their customers about alternative payment methods.
What the US says about the fines:
It seems that the US is not taking kindly to regulatory action against Apple and Meta. According to a Reuters report, the White House has said that the fines against Apple and Meta are a form of economic extortion and called the DMA discriminatory. “Extraterritorial regulations that specifically target and undermine American companies, stifle innovation, and enable censorship will be recognised as barriers to trade and a direct threat to free civil society,” a White House representative told the publication.
[Excerpt from Medianama "EU Fines Apple and Meta for DMA Violations" Dated 25/04/25]

Q1: What is the primary goal of the Digital Markets Act (DMA)?
(a) To encourage mergers of tech companies
(b) To support only European digital businesses
(c) To ensure fair competition and prevent abuse of market dominance
(d) To ban all forms of online advertising

View Answer  

Ans: (c)
Sol: The DMA aims to ensure fair competition and stop “gatekeepers” from abusing their market power.

Q2: Why was Apple fined under the DMA?
(a) For selling user data
(b) For blocking European apps
(c) For restricting developers from informing users about alternative purchasing options
(d) For creating fake reviews

View Answer  

Ans: (c)
Sol: Apple was fined 500 million euros for preventing developers from informing users about purchasing options outside its App Store.

Q3: What is Meta’s “pay or consent” model that led to its fine?
(a) Users must buy apps before using them
(b) Users are given unlimited access to all content for free
(c) Users must either pay for an ad-free version or accept targeted advertising
(d) Users must agree to share content to continue using services

View Answer  

Ans: (c)
Sol: Meta was fined 200 million euros for forcing users to either pay for an ad-free experience or accept targeted ads.

Q4: What distinguishes the DMA fines from earlier EU antitrust penalties?
(a) They are the largest in history
(b) They target only small tech startups
(c) They signal a regulatory approach rather than strictly punitive action
(d) They completely ban Apple and Meta from operating in Europe

View Answer  

Ans: (c)
Sol: The passage mentions that the DMA fines are part of a broader regulatory shift rather than just large punishment.

Q5: How did Meta respond to the fine imposed by the EU?
(a) It accepted the decision and changed its policy
(b) It praised the EU for supporting digital freedom
(c) It claimed the ruling favors European and Chinese companies
(d) It announced shutting down services in Europe

View Answer  

Ans: (c)
Sol: Meta criticized the fine, stating it disadvantages American firms while favoring European and Chinese competitors.