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On Wednesday, the European Union imposed substantial penalties on Apple and Meta, marking the first major enforcement under the Digital Markets Act (DMA) — legislation designed to reduce Big Tech’s dominance and support smaller market players.
Apple was fined €500 million ($570 million), while Meta received a €200 million penalty.
These sanctions come after a year-long probe by the European Commission into whether the companies were adhering to the rules of the DMA. The act aims to ensure fair competition and reduce monopolistic practices by tech giants.
Possible Tensions with the U.S.
The decision could spark diplomatic friction with U.S. President Donald Trump, who has previously threatened tariffs in retaliation against penalties on American corporations.
Apple announced it would fight the ruling in court.
“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,” Apple said in an emailed statement.
Meta Pushes Back
Meta also voiced strong criticism of the EU’s action.
“The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards,” Meta stated via email.
“This isn’t just about a fine; the Commission forcing us to change our business model, effectively imposing a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service.”
Despite the heavy media coverage, the penalties are relatively moderate compared to fines imposed by the former EU antitrust chief, Margrethe Vestager. Sources cited factors like the short duration of violations, the EU’s emphasis on compliance over punishment, and a wish to avoid provoking the U.S. administration.
Key Violations and EU Demands
The European Commission ordered Apple to eliminate restrictions preventing app developers from directing users to more affordable options outside the App Store. Additionally, Meta’s “pay-or-consent” model — introduced in late 2023 — was found to violate DMA rules. This model gives users a choice between a free ad-supported service (with consent to tracking) or a paid ad-free experience.
Meta is currently in talks with EU regulators to modify this model. Both tech firms have a two-month window to comply or face daily fines.
Apple managed to avoid a penalty in another inquiry concerning browser choices on iPhones after updating its system to let users switch to third-party browsers or search engines more easily. This move was deemed compliant with DMA standards, leading to the closure of that investigation.
However, Apple still faces charges over restrictions on sideloading — downloading apps from outside its App Store — and for implementing a Core Technology Fee, which the Commission criticized as discouraging developers from distributing apps through alternate platforms on iOS.
The Commission also decided to drop the DMA gatekeeper status of Meta’s Marketplace after a user base decline placed it below the legal threshold.
“We have taken firm but balanced enforcement action against both companies, based on clear and predictable rules. All companies operating in the EU must follow our laws and respect European values,” said EU antitrust chief Teresa Ribera.
European lawmaker Andreas Schwab urged regulators to maintain pressure on other tech giants.
“There can be no leeway in enforcement as this may also impact the importance of competition policy in general,” he said, warning that decisions influenced by trade politics would be “dangerous for the whole European Union construction.”
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