Vulcan View: The latest EU developments 21 April – 25 April

European Commission imposes landmark DMA fines on Apple and Meta

On Wednesday (23 April), the European Commission sent a strong message to Big Tech companies by announcing significant fines for Apple and Meta due to their non-compliance with the EU’s Digital Markets Act. The European Commission fined Apple €500 million and Meta €200 million, asserting that both giants have stifled competition and limited consumer choice through their operational practices. This decisive action marks the first instance of non-compliance fines issued under the DMA, signalling a new era of stricter digital enforcement within the EU.

Apple’s App Store under review

Under the DMA, app developers must be allowed to inform users about alternative offers outside a platform, guide them to those offers and enable purchases without undue restriction. The Commission found that Apple’s App Store rules prevent developers from effectively steering customers to lower-cost or alternative distribution channels. By imposing technical and contractual barriers, Apple effectively stops developers from telling users about cheaper options elsewhere—undermining both developer freedom and consumer choice. “These restrictions are neither objectively necessary nor proportionate,” the Commission noted, ordering Apple to remove the offending clauses within 60 days or face daily penalty payments.

Meta’s “Consent or Pay” model fails the DMA test

The Commission raised concerns about Meta’s “consent or pay” model, which was introduced in November 2023. This model offered EU users a binary choice: either agree to have their data combined for personalised advertising or pay a monthly subscription for an ad-free experience. The Commission determined that this approach did not provide users with a meaningful option for a less personalised and comparable service.

It concluded that neither choice constituted a genuine, less personalised alternative and that the setup undermined the users’ ability to give free and informed consent over their data. While Meta introduced a revised model in November 2024, offering an alternative that purportedly uses fewer personal data for ads, today’s decision is limited to the period between March and November 2024 when the “consent or pay” model was the only option presented to users. Furthermore, following a reassessment of its business user numbers, the Commission decided that Meta’s Facebook Marketplace would no longer qualify as a gatekeeper under the DMA.

Commission’s statements

Teresa Ribera, the Commission’s Executive Vice-President for Clean, Just, and Competitive Transition, stated, “These are decisions that are not taken with passion but with seriousness and evidence. It’s law enforcement.” Moreover, Henna Virkkunen Executive Vice-President for Tech Sovereignty affirmed: “Enabling free business and consumer choice is at the core of the rules laid down in the Digital Markets Act.”

Consequences

The Commission has made it clear that it will continue to engage with both companies to ensure complete adherence to the DMA. Besides, both companies have already signalled their intention to appeal, prolonging legal uncertainty.

Furthermore, these landmark decisions underscore the EU’s commitment to fostering a more competitive and fairer digital landscape. Nonetheless, these fines deepen a growing transatlantic standoff over digital regulation. They stress that EU law will be enforced regardless of U.S. pressure or tariff threats, and heighten political tensions while the 90-day tariff pause continues. Finally, they also indicate that the EU will not compromise its Digital Markets Act under any external pressure.

European Parliament approves its priorities for the next long-term EU Budget

On Wednesday, 23 April, the European Parliament Budgets Committee established its priorities for the next long-term EU budget. MEPs emphasised the need for a significantly more ambitious long-term EU budget, as it comes at a time of escalating geopolitical tensions and global instability.

MEPs argued that the current spending of 1% of the EU-27’s gross national income (GNI) is also not enough to address the growing number of crises and challenges – especially with the U.S. retreating from its global role.

The idea of replicating the “one national plan per member state model” used in the Recovery and Resilience Facility for post-2027 spending in member states has been opposed by MEPs. Instead, they are advocating for a structure that ensures transparency, involving regional and local authorities and all relevant actors.

Additionally, MEPs have considered the Commission’s proposed Competitiveness Fund as inadequate, asking instead for a new targeted fund designed to leverage private and public investment through EU-backed de-risking mechanisms, building on the success of instruments like InvestEU and the Innovation Fund. Unnecessary red tape must be cut for those benefiting from EU funding. MEPs have also advocated for a simpler budget that is also more transparent.

There must also be a degree of flexibility in spending, with crisis-response capabilities built into the long-term budget for each policy area. MEPs are calling for two additional special instruments: for disaster relief and for other unforeseen challenges.

Moreover, MEPs have requested that the repayment of NextGenerationEU borrowing costs not jeopardise funding for EU priorities. The report urges the Council of member states to adopt new, genuine revenue resources for the sustainable financing of borrowing and of Europe’s higher spending needs – MEPs consider joint borrowing a viable option for tackling EU-wide crises.

The European Parliament’s Budget Committee’s position on the next long-term EU budget reflects a clear shift towards a future and crisis-proof financial framework. MEPs are arguing for a significant increase in the EU budget, stating that the current level of spending is insufficient in the face of escalating geopolitical tensions and global instability. Overall, the MEP’s position represents a proactive and ambitious shift for the EU budget – advocating not only for increased funding but also for smarter, more strategic, and more resilient financial planning.

Planning delays and investor retreat put Ireland’s offshore wind ambitions at risk 

Industry sources claim to the Business Post that Ireland’s prospects of securing billions of euros in offshore wind investment to meet 2030 targets are limited. Currently, there are five offshore wind projects – amounting to 3.8 GWs – in the planning pipeline. The situation worsened when Corio Generation abandoned its Sceirde Rocks wind farm. This setback, paired with a lengthy regulatory process for other projects, means that Ireland’s target of 5 gigawatts of offshore wind by 2030 now appears unachievable. This also represents an early setback for the Government’s Climate Action Plan 2025.

This news follows the publication of Ireland’s first industrial wind energy strategy, mapping offshore wind targets to 2050. In a plan presented to the government by Environment Minister Darragh O’Brien, renewable energy leaders will have the ability to bid on multiple offshore wind project sites at the same time. The objective of this move is to open up a wide range of development opportunities along Ireland’s coasts, as Minister O Brien attempts to preserve the state’s ability to meet 2030 targets – seen as crucial for maintaining confidence in the industry.

In April, EirGrid, Enterprise Ireland, and the IDA signed a memorandum of understanding of the future of offshore wind in Ireland, signalling a formal commitment to supporting offshore wind development and attracting inward investment. As part of the collaboration, training programmes on public procurement will be established to develop the supply chain required to reach 37 GW of offshore wind by 2050.

The department has little short-term recourse to improve the investment landscape – with the key obstacles still centring around planning delivery and delays in developing the requisite infrastructure. At present, a minimum of six years is required between the awarding of an Offshore Renewable Electricity Support Scheme auction contract and project completion.

In line with the Programme for Government commitments, Minister Jack Chambers announced the creation of a new infrastructure division within the Department of Public Expenditure, Infrastructure, and Reform. Crucially, industry and state agency experts will be seconded to the division, including individuals from ESB Networks, Uisce Éireann, Eirgrid and Transport Infrastructure Ireland. Initially, it is crucial to pinpoint the “specific bottlenecks” that hinder infrastructure delivery. The division will also evaluate global best practices in infrastructure development to assist in creating an action plan. These developments are likely to be welcomed in general; however, they may come too late to ensure the achievement of 2030 targets.

Compliments of Vulcan Consulting – a member of the EACCNY