The European Union has levied substantial fines totaling 700 million euros (nearly $800 million) against tech giants Apple and Meta for violations of the bloc’s groundbreaking Digital Markets Act (DMA).
These penalties mark the first instance of sanctions being imposed under the new regulation, which is designed to curb the power of major technology firms.
Apple was penalized with a 500-million-euro ($570 million) fine for implementing restrictions that limit app developers’ ability to inform users about alternative sales channels and offers outside of Apple’s App Store.
Meta incurred a 200-million-euro (nearly $230 million) fine due to its controversial “pay or consent” model, which requires users within the EU to either pay a fee for ad-free access to Facebook and Instagram or consent to personalized advertising.
These penalties are the result of a year-long investigation conducted by the European Commission, the EU’s executive body, to determine whether the companies were adhering to the DMA, which took effect last year.
In addition to the financial penalty, Apple has been issued a cease-and-desist order, mandating further modifications to its App Store operations by late June. Failure to comply could result in the Commission imposing daily penalties for ongoing breaches.
EU officials are also currently reviewing changes implemented by Meta late last year to assess whether its revised model now meets the requirements of the regulation.
The Commission emphasized that Wednesday’s fines are procedural in nature and are considerably smaller than penalties previously issued under the EU’s antitrust rules, which aim to foster competition and dismantle companies deemed to hold a monopoly within the single market.
Notably, Apple was fined 1.8 billion euros ($2.05 billion) last year for abusing its dominant position in the music streaming market, and Meta was fined 797 million euros ($909 million) for promoting its classified advertisements service on its social media platforms.
However, the continued enforcement of these digital regulations carries the potential to escalate tensions with Washington. President Donald Trump has previously issued threats of further tariffs against countries that impose penalties on United States companies.
In February, the White House issued a warning that it would consider countermeasures in response to the bloc’s digital regulations, encompassing the DMA and the separate Digital Services Act, legislation aimed at combating online disinformation.
Simultaneously, pressure on Big Tech is also intensifying within the US. Meta is currently facing trial over accusations of stifling competition through its acquisitions, which could potentially lead to the forced sale of Instagram and WhatsApp.
Apple and Amazon are also subject to antitrust lawsuits, while Google has experienced two significant legal defeats in the past year concerning its dominance in internet search and digital advertising.
Meta has indicated its likely intention to appeal the European Commission’s ruling, characterizing the decision as a targeted attack on American companies.
