EU Imposes €700 Million Fine on Apple and Meta

The European Commission has imposed significant fines on tech giants Apple and Meta in its first enforcement actions under the Digital Markets Act (DMA), a new regulatory framework aimed at enhancing consumer choice and ensuring fair competition in the digital economy.

Apple was fined €500 million (£428.3 million) for limiting app developers’ ability to direct users to alternative purchasing options outside its App Store.

The Commission argued that this practice restricted access to more affordable options and stifled competition. Apple has been ordered to revise its App Store policies by late June to comply with the DMA, with the Commission warning that further daily penalties will be imposed if the company fails to comply.

Meta, the parent company of Facebook and Instagram, received a €200 million (£171.3 million) fine for its ‘pay or consent’ model, which required EU users to either pay for an ad-free experience or consent to personalized advertising.

The Commission found that this model did not provide users with a genuine choice and violated rules related to data processing and user consent. Meta’s changes to this model, implemented in November 2024, are currently under EU review.

Both companies have expressed opposition to the Commission’s decisions. Apple plans to appeal, arguing that the ruling undermines user privacy and security.

“Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free,” the company said.

Meta also criticized the EU’s approach, arguing that it places excessive burdens on successful American companies while allowing competitors from China and Europe to operate under different standards.

Joel Kaplan, Meta’s chief global affairs officer, said, “This isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service.”

The fines are part of the EU’s broader effort to regulate dominant digital platforms, referred to as ‘gatekeepers,’ to prevent them from exploiting their market power.

The commission has also concluded an investigation into Apple’s compliance with DMA rules regarding browsers and default apps, acknowledging positive changes that have opened more room for competition.

However, Apple remains under scrutiny for its handling of alternative app marketplaces, potentially leading to further penalties.

These enforcement actions could strain transatlantic relations, as some in the United States, including former President Donald Trump’s administration, have criticized the EU’s digital regulations for disproportionately targeting American companies.

Despite the backlash, the European Commission maintains that the Digital Markets Act is enforced fairly to protect consumer rights and ensure fair competition in the digital market.