Key Points:
- The EU has fined Apple €500 million and Meta €200 million for violating the Digital Markets Act.
- Apple restricted developers from steering users to cheaper alternatives outside the App Store.
- Meta’s “consent or pay” model was found to breach user data choice rules under EU law.
The European Union has imposed substantial fines on tech giants Apple and Meta for breaching its landmark Digital Markets Act (DMA), marking the first enforcement actions under the new legislation aimed at curbing the dominance of major online platforms.
The European Commission announced Wednesday that Apple would be fined €500 million (approximately $570 million) and Meta €200 million ($228 million) after a year-long investigation into the companies’ compliance with the DMA. The Commission found that both firms had failed to adhere to rules designed to foster fair competition and protect consumer rights in the digital economy.
Apple’s App Store Restrictions
According to the Commission, Apple violated the DMA by imposing restrictions that prevented app developers from informing users about cheaper offers available outside of the Apple App Store. The company allegedly used technical and commercial barriers that limited alternative distribution options, thereby denying consumers more affordable choices.
In a statement, Apple said it would appeal the decision, criticizing the Commission for “unfairly targeting Apple in a series of decisions” and asserting that the imposed changes compromise user privacy and product integrity. “We have made numerous adjustments to comply with the law, yet the Commission continues to shift the goalposts,” Apple added.
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Meta’s “Consent or Pay” Advertising Model
The EU also ruled against Meta’s binary data usage model implemented on Facebook and Instagram, which required users to either consent to targeted advertising or pay for an ad-free version. Regulators concluded that Meta failed to offer a free version that uses less personal data, as mandated by the DMA.
Meta’s global affairs head Joel Kaplan labeled the ruling as a “multi-billion-dollar tariff” disguised as regulation. He criticized the EU for allegedly disadvantaged successful American companies while letting others operate under looser standards.
The penalties come amid broader trade friction between the EU and the United States, as President Donald Trump’s administration has accused the EU of unfairly targeting American firms. Trump has threatened to impose retaliatory tariffs, raising the stakes in ongoing negotiations over digital and trade policy.
While some European lawmakers welcomed the enforcement as a step toward digital fairness, others, including German MP Andreas Audretsch, argued the penalties were “too lenient” and urged the Commission to fully utilize its legal powers to protect EU regulations from foreign influence.
The European Commission has given both companies 60 days to comply with the ruling or face further sanctions.
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