Brussels regulators hit two of the biggest names in tech—Apple and Meta—with a combined €700 million ($760 million) in fines Wednesday, stepping up enforcement of the European Union’s sweeping new digital competition law. The European Commission fined Apple €500 million ($571 million) for restricting app developers from directing users to cheaper alternatives outside of the App Store. Additionally the EU fined Meta €200 million for giving users a choice to accept personalized ads or pay to opt out.
EU Fines Apple and Meta Hundreds of Millions
“These decisions mark a turning point in ensuring that Big Tech respects digital freedom and consumer choice in the EU,” said Henna Virkkunen, the Commission’s executive vice president for tech sovereignty. “Both Apple and Meta denied users the freedom to choose how their data is used or where they can make purchases.”
Both companies say they plan to appeal. Apple accused the EU of unfairly targeting it, despite “hundreds of thousands of engineering hours” spent complying with the bloc’s Digital Markets Act (DMA). “Despite countless meetings, the Commission continues to move the goalposts every step of the way,” Apple said in a statement. Meta’s Chief Global Affairs Officer Joel Kaplan responded forcefully, calling the Commission’s actions “an effort to handicap successful American businesses” while giving non-U.S. firms more leeway. “This isn’t just about a fine,” Kaplan said. “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.”
What the Fines Look Like
The fines are the first issued under the DMA, the EU’s landmark legislation aimed at reining in so-called digital “gatekeepers.” The act requires major platforms to give users and businesses more control over data and market access. Companies have 60 days to comply or face additional penalties. In Apple’s case, regulators found the iPhone maker blocked app developers from informing users about less expensive purchasing options available outside the App Store, violating DMA rules.
The Commission has ordered Apple to lift technical and commercial barriers and allow developers to direct users to external payment methods. Apple said the changes it made in response to the DMA were significant, even if not user-driven. “None of our users have asked for these changes,” the company noted. As for Meta, the investigation centered on its attempt to comply with strict EU privacy rules by introducing a paid subscription model for ad-free Facebook and Instagram. Regulators argued that Meta’s approach failed to offer users a genuine ability to consent to the use of their data, especially as it merges data from across services like Messenger, WhatsApp, and Facebook Marketplace.
A third option rolled out by Meta in November, allowing users to see fewer personalized ads instead of paying, remains under review by the Commission. Despite heightened trans-Atlantic tensions over digital regulation, EU officials pushed back on accusations of bias. “We don’t care where a company is from,” said Commission spokesperson Thomas Regnier. “If you want to operate in Europe, you play by our rules.”
Featured Image Credit: Markus Spiske; Pexels: Thank You!
