In response, Apple criticized the decision, arguing that it undermines the privacy and security of users and forces the company to relinquish its proprietary technologies. The company has vowed to challenge the ruling in court.
Brussels – European Commission has levied a combined €700 million in fines against U.S. tech giants Apple and Meta for breaching the European Union’s Digital Markets Act (DMA). Apple faces a €500 million penalty, while Meta has been fined €200 million.
This development marks the first official enforcement action under the DMA, which came into effect in 2022 to regulate the operations of major digital platforms within the EU. The Commission has given both companies 60 days to align their operations with the DMA or face additional periodic fines.
Apple’s fine stems from what the Commission describes as anti-competitive restrictions placed on app developers. The tech company allegedly prevented developers from informing users about alternative purchasing options outside of its App Store, without providing sufficient justification for these limitations. Brussels argues that such practices unfairly reinforce user and developer dependence on Apple’s ecosystem.
In response, Apple criticized the decision, arguing that it undermines the privacy and security of users and forces the company to relinquish its proprietary technologies. The company has vowed to challenge the ruling in court.
Meta’s penalty is tied to its “pay-or-consent” model implemented between March and November 2024. Under this system, users in the EU were required to either pay for an ad-free experience or consent to personalized advertising on platforms like Facebook and Instagram. The Commission deemed the model incompatible with the DMA, stating that it failed to offer a genuine alternative that minimized data usage while still delivering a comparable service.
Spanish Commissioner Teresa Ribera emphasized that both companies had failed to meet the DMA’s compliance standards by introducing measures that deepened user and business reliance on their services.
While the Commission insists these actions are legally grounded and not politically motivated, the fines risk exacerbating trade tensions between the EU and the United States. U.S. Republican leaders have previously criticized such measures, likening them to de facto taxation of American businesses.
Despite the substantial financial penalties, they represent only a fraction of the companies’ annual revenues. In 2024, Apple reported a global turnover of just under $400 billion, while Meta earned approximately $165 billion. Under EU law, fines for non-compliance can reach up to 10% of global turnover, with the threshold rising to 20% for repeated violations.
The penalties are still subject to legal challenges, and both firms may pursue appeals through the EU judicial system.
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