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The European Union (EU) has taken a decisive stand against major tech companies by imposing fines amounting to €700 million on Apple and Meta as part of its stringent enforcement of the Digital Markets Act (DMA). This action underscores the EU’s commitment to curbing the excessive power of these giants in the digital economy.
On Wednesday, the European Commission, the EU’s executive arm, made it clear that Apple has been slapped with a €500 million (approximately $571 million) fine for its practices that prevent app developers from guiding users toward more affordable alternatives outside its App Store.
The European Commission fined Meta €200 million ($228 million) because the company required users to choose between personalized advertisements and fees to eliminate the display of advertising platforms, which regulators described as a violation of EU data privacy laws by forcing users to provide consent. The commission set a 60-day deadline for the companies to implement these orders or face growing “periodic penalty payments.”
These fines are the first sanctions imposed as a result of the Digital Markets Act, which went into effect in 2023 to prevent “gatekeeper” platforms from abusing their position while fostering fair digital market competition in the EU. Marketing and technical improvements saw a significant shift in European control standards designed to limit big tech dominance and expand consumer market options.
Company Responses and Legal Challenges
Apple responded sharply, announcing plans to appeal the decision. The company accused the commission of “unfairly targeting” it and criticized the EU for what it called shifting regulatory demands.
“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,” the company said in a statement.
Meta opposed the ruling when it went into force. According to Joel Kaplan, Meta’s Chief Global Affairs Officer, this decision is an attempt to limit American company performance by adopting radically different standards than those utilized by European and Chinese firms. According to Kaplan, the ruling imposes a multibillion-dollar trade restriction on Meta while also forcing the company to provide subpar services.
International Tensions and Political Backdrop
The sanctions came during a period of deteriorating transatlantic relations, as President Donald Trump constantly assailed EU digital laws while threatening to impose trade barriers on countries that levy penalties on US companies. In previous comments, Trump described the DMA as overseas extortion, promising to safeguard American entrepreneurs.
In response to concerns over escalating trade disputes, European Commission spokesperson Thomas Regnier emphasized the bloc’s neutral approach: “We don’t care who owns a company. We don’t care where the company is located. Be it a Chinese company, an American company, or a European company—you will have to play by the rules in the European Union.”
The European Commission ruled that Apple violated the DMA by imposing technical restrictions on software developers, limiting their ability to promote price discounts outside of the software store.
Meta’s “pay or consent” model does not offer valid user autonomy for managing data utilization in accordance with regulatory norms. As Meta just offered new settings that provide users with reduced ad personalization at no cost, the Commission continues its inquiry because it requires additional documentation from the company.
The fines imposed are higher than previous typical EU antitrust record-breaking penalties, but EU officials are now prioritizing enforcement over huge fines in order to avoid criticism from the US government.
Ongoing Investigations
The commission also confirmed ongoing probes into Google and Elon Musk’s X (formerly Twitter), suggesting further enforcement actions may follow. The EU’s resolve has been strengthened by a recent U.S. court ruling that found Google had illegally dominated key sectors of the online advertising market, potentially paving the way for similar action on both sides of the Atlantic.
As the EU pushes ahead with the enforcement of its digital competition rules, the latest fines underscore a broader global reckoning with the power and practices of Big Tech companies.
