The European Union has fined Apple €500 million and Meta €200 million for breaching the Digital Markets Act, marking the first penalties under the new legislation designed to rein in the power of Big Tech companies.
According to the European Commission, Apple violated the Digital Markets Act by restricting app developers from directing users to cheaper subscription options outside the App Store. Meta was penalized for its “pay or consent” model, which gives Facebook and Instagram users the option to pay for an ad-free experience or allow tracking for free access.
The EU’s digital watchdog also ordered Apple to make further product changes by June or face daily fines. Meta, meanwhile, is in talks with regulators to revise its model introduced in November 2023.
The Digital Markets Act, which came into effect in 2024, aims to foster fair competition by limiting the dominance of major platforms. As reported by Reuters, the sanctions follow a yearlong investigation into the companies’ compliance with these new rules.
In response, both companies criticized the EU’s actions. Apple said the Commission was “unfairly targeting” the company and vowed to appeal the decision. Meta argued that the EU was imposing a “multi-billion-dollar tariff” that could harm both American businesses and European users.
These sanctions could further strain trade relations with the United States. As noted by Reuters, former President Donald Trump has previously threatened tariffs on countries penalizing American firms.
Despite the criticism, EU Competition Commissioner Teresa Ribera defended the fines as “firm but balanced enforcement action based on clear and predictable rules.”
The European Commission also closed an investigation into Apple’s browser practices after the company made changes to help competitors, and it removed Facebook Marketplace from its list of regulated services due to decreased user numbers. However, further scrutiny of Apple’s App Store practices could lead to additional penalties.
