The European Commission has issued groundbreaking fines against tech giants Apple and Meta in its first actions under the Digital Markets Act (DMA), a new regulatory framework to promote consumer choice and ensure fair competition in the digital sector.
Apple received a €500 million (£428.3 million) fine for preventing app developers from directing users to alternative purchasing methods outside the App Store. The Commission stated that this practice hindered access to better-priced options and suppressed competition. Apple has been instructed to revise its App Store policies by the end of June to align with the DMA, or face additional daily penalties.
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Meta, the parent company of Facebook and Instagram, was fined €200 million (£171.3 million) for implementing a “pay or consent” model. This approach required EU users to either pay for an ad-free service or agree to personalized ads, which the Commission determined did not provide a meaningful choice and breached data protection and user consent rules. Meta’s changes to this system, introduced in November 2024, are currently under EU review.
APPLE AND META TO APPEAL THE DECISION
Both companies have contested the decisions. Apple has announced it will appeal, claiming the ruling is unfair and could compromise 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.
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META CRITICIZED THE EUROPEAN UNION’S STANCE
Meta also criticized the EU’s stance, arguing that it burdens successful American firms unfairly while allowing Chinese and European competitors to operate under separate, more lenient 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 initiative to rein in powerful digital platforms—referred to as ‘gatekeepers’—and prevent them from exploiting their dominant market positions. The Commission has also wrapped up an investigation into Apple’s adherence to DMA regulations regarding browsers and default apps, noting that recent adjustments have fostered greater competition. Nonetheless, Apple continues to face scrutiny over its management of alternative app marketplaces, which could lead to further penalties.
These enforcement actions risk adding tension to transatlantic relations. Critics in the United States, including members of former President Donald Trump’s administration, have accused the EU of disproportionately targeting American tech companies with its digital regulations. Despite such criticisms, the European Commission maintains that the DMA is applied impartially to protect consumer rights and ensure fair competition across the digital landscape.
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