EU Fines Apple And Meta 700 Million Euros For Breaching Digital Competition Rules.
The European Union has imposed fines totalling 700 million euros on tech giants Apple and Meta for breaching digital competition regulations under the bloc’s new Digital Markets Act (DMA), a move that risks heightening tensions with US President Donald Trump’s administration.
Announced on Wednesday, the penalties include a 500 million euro fine for Apple for restricting app developers from guiding users to alternative, often cheaper, options outside its App Store. Meta was fined 200 million euros for its controversial “pay or consent” system, which was found to violate data protection rules on Facebook and Instagram.
These are the first fines issued under the DMA, which came into effect last year. The legislation is aimed at preventing anti-competitive behaviour among the world’s largest digital platforms and fostering fair competition across the European Union.
The European Commission warned that if the companies fail to comply within 60 days, additional periodic penalties could be introduced.
Antitrust Commissioner Teresa Ribera said the sanctions “send a strong and clear message”, and that the EU had taken “firm but balanced enforcement action” in line with its digital legislation.
However, the fines have the potential to escalate trade tensions with the United States. President Trump has repeatedly criticised the EU’s tech regulations, describing them as non-tariff barriers to trade. His administration has imposed 25 per cent tariffs on EU steel, aluminium, and automotive imports, with Brussels currently seeking a deal to ease those restrictions.
Apple has rejected the Commission’s decision and announced it would appeal the fine. The company said in a statement, “Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free.”
Meta also responded strongly, accusing the EU of trying to handicap American companies. Joel Kaplan, Meta’s chief global affairs officer, stated, “This isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service.”
Despite the penalties, Apple did receive positive news as the Commission closed an investigation into user choice obligations after the company made it easier for users to select a default browser and remove pre-installed apps like Safari.
The fine against Meta centred on its “pay for privacy” system, introduced in November 2023, which requires users to either consent to data tracking or pay for an ad-free version of Facebook and Instagram. The EU found that Meta failed to provide users with an equivalent, less personalised service and did not allow for true user consent.
Meta proposed an alternative version of the system in November last year, which is still under review by the European Commission.
As Europe strengthens its oversight of major tech firms, this round of fines marks a significant milestone in the enforcement of digital laws, and sets a precedent for future regulatory action within the EU and beyond.
