On April 23, 2025, the European Commission announced fines amounting to €700 million related to the Digital Markets Act (DMA) investigations. However, the Commission did not specify how these funds would be utilized to foster innovation among Europe's small and medium-sized enterprises (SMEs).
Mike Sax, founder of ACT | The App Association, expressed concern, stating, "€700 million is going directly into the coffers of the European Commission without any details on what that money will be used for." Sax criticized the fines as promoting compliance rather than encouraging innovation or supporting European SMEs. He emphasized that developers need improvements in app store tools, consumer privacy protection, and secure access to global markets, rather than fines.
Further, the Commission's demands for additional product changes have raised apprehensions about security and intellectual property protection for existing SME applications. Sax highlighted that "these mandated changes create openings for bad actors to exploit." He warned that such vulnerabilities could erode consumer confidence, impacting SMEs lacking global brand recognition.
ACT | The App Association is a global trade association representing small and medium-sized tech companies, focusing on policy advocacy and resource provision to support innovation, job creation, and technological advancement.