The European Union has imposed hefty fines on tech giants Apple and Meta, totaling €700 million, for violating digital competition laws. The move, under the EU’s new Digital Markets Act (DMA), has added strain to already tense transatlantic relations with U.S. President Donald Trump.
Apple was fined €500 million for restricting developers from guiding users to more affordable offers outside its App Store. Meta was hit with a €200 million penalty for its “pay or consent” model, which the EU ruled failed to offer users a real choice regarding data sharing on Facebook and Instagram.
These are the first penalties enforced under the DMA, which aims to level the playing field in the digital market. Both companies have 60 days to comply or face further periodic fines.
Apple announced plans to appeal, accusing the EU of targeting it unfairly. “These decisions are bad for user privacy and product integrity,” Apple said in a statement.
Meta’s global affairs chief, Joel Kaplan, also criticized the fines, calling them an “effective multi-billion-dollar tariff” on U.S. firms, while claiming that European and Chinese companies are not held to the same standards.
The Commission noted some compliance: Apple has adjusted features to meet user choice requirements under the DMA, such as allowing default browser selection and removal of pre-installed apps.
The fine against Meta centers on its November 2023 data policy, which requires users to pay for privacy or allow data tracking for free access. The Commission said Meta failed to offer a meaningful alternative, violating user consent rules.
The EU continues to assess Meta’s revised proposal submitted late last year.
