Apple was fined 500 million euros ($570 million) and Meta was fined 200 million euros ($230 million) by the European Commission, in the organization’s first move to require large digital platforms to follow fair practices based on the Digital Markets Act (DMA) adopted in 2022.
The commission said the hefty fines were levied after “extensive dialogue” with the two tech giants that enabled the companies to offer their arguments in extensive detail.
Apple was penalized for a breach of the DMA’s anti-steering obligation. This regulation requires that an app distribution platform—in this case, Apple’s App Store—must allow developers to inform customers without charge of competing offers outside the vendor’s app platform.
The Commission found that Apple imposed restrictions that blocked app developers from benefitting from the advantages of alternative distribution channels. Ultimately, the Commission said, it’s consumer that are harmed because they “cannot fully benefit from alternative and cheaper offers” outside the closed Apple ecosystem.
In addition to paying the fine, Apple must now remove the blocks in its App store that prevent app developers from guiding users to offers on competing platforms.
Meta was penalized by the Commission because in 2023, the social media platform debuted a “Consent or Pay” offer for users. This meant that Facebook and Instagram users in Europe could select either a free service that used their personal data for personalized advertising, or pay for an ad-free service. The Commission informed Meta that this dual model was not DMA compliant; the regulation requires platforms to enable users to select a service that uses less personal data but also provides an equivalent personalized ad environment.
A year after the service debuted, Meta unveiled a revised service that it claimed enabled users to share less personal information but still see personalized ads. The Commission is still investigating this newer offer. The fine was levied due to the early service’s non-compliance with the DMA.
Both tech vendors protested the penalties. “The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards,” said Joel Kaplan, Meta’s chief global affairs officer. “This isn’t just about a fine; 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.”
Apple announced it would appeal the Commission’s ruling, which comes after the E.U. fined the company last year for using the App Store to limit competition among music streaming providers. “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 a statement.
Because this year’s fines are lower than last year’s, some observers speculated the Commission is treading carefully due to the trade war that’s currently threatening alliances between the U.S. and the E.U. However, E.U. spokesperson Arianna Podesta clarified that the issues are “completely separate.” These fines are about enforcement, not trade negotiations, she said.
