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The European Union has fined Apple and Meta a total of about $797 million for breaking its new digital competition law, the Digital Markets Act (DMA). This is the first time the law has been enforced.
Apple fined $570 million
Apple was punished for stopping app developers from telling users about cheaper or alternative options outside the App Store. The EU said this limited choices and made things more expensive for users.
Meta was fined $228 million
Meta (Facebook and Instagram's parent company) had made users in Europe choose between paying for ad-free versions of its apps or allowing their personal data to be used for targeted ads. The EU said this gave users no real choice and broke the rules.
Both companies say the EU is unfairly targeting successful American businesses. Apple said it would appeal, and Meta said the EU is trying to “handicap” US companies.
“This isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multibillion-dollar tariff on Meta while requiring us to offer an inferior service,” said Joel Kaplan, Meta’s chief global affairs officer.
These fines come at a time when the Trump administration is also criticising the EU for being tough on American tech firms.
“We have spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law, none of which our users have asked for. Despite countless meetings, the Commission continues to move the goal posts every step of the way,” a representative for Apple said.
EU warns US firms of more penalties
The European Commission said the size of the fines for Apple and Meta reflects how serious and long-lasting their violation was. Both companies now have 60 days to pay, or they could face even more penalties.
Under the Digital Markets Act (DMA), the EU can fine companies up to 10 per cent of their yearly global revenue, and up to 20 per cent for repeat violations.
To put things in perspective:
Meta made over $164 billion last year.
Apple made about $391 billion.
So, the fines — €500 million for Apple and €200 million for Meta — are much lower than the maximum amounts the EU could have charged.
(With inputs from agencies)
