The European Union has imposed a combined fine of €700 million ($797 million) on Apple and Meta in the first enforcement of its landmark Digital Markets Act (DMA). The penalties come amidst criticism from the Trump administration, which has accused the EU of unfairly targeting American companies.
Penalties for Apple and Meta
The European Commission, the EU’s executive arm, announced on Wednesday that it has fined Apple €500 million ($570 million) and Meta €200 million ($228 million) for breaching the Digital Markets Act. The fines come after a year-long investigation into the companies’ business practices, particularly regarding how they handle user data and app store policies.
Meta’s Advertising Practices Under Scrutiny
Meta, the parent company of Facebook and Instagram, was fined for not offering European users the option to use its platforms with less data processing unless they paid for ad-free versions. In November 2023, Meta introduced a “consent or pay” advertising model, which forced users to either consent to data combination for personalized ads or pay for a less data-driven experience. The European Commission is still assessing whether Meta’s revised model complies with DMA regulations.
Apple’s Violation of the ‘Steering’ Rule
Apple was found in violation of the “steering” rule in the DMA, which requires app developers to inform customers about alternative offers outside the App Store and allow them to make purchases without restrictions. The European Commission stated that Apple’s restrictions prevent consumers from benefiting from alternative and often cheaper offers, leading to the fine.
Reactions from Apple and Meta
Both companies have expressed dissatisfaction with the fines. Meta’s Chief Global Affairs Officer, Joel Kaplan, criticized the EU for targeting successful American businesses, while Apple called the fine “unfair” and said it was being forced to give away its technology for free. Both companies plan to appeal the decision.
Potential Political Implications
The fines come amid growing tensions between the EU and the U.S., with President Trump accusing the EU of “unfairly penalizing American companies” and saying the EU was “formed to screw the United States.” Trump recently announced a 20% tariff on EU goods, which has been postponed until July. The ongoing trade disputes between the EU and the U.S. are likely to intensify as both sides continue to implement tariffs.