The European Union has imposed its first major penalties under the Digital Markets Act (DMA), fining Apple €500 million and Meta €200 million for antitrust violations. These fines mark a major step in the EU’s efforts to regulate dominant tech companies and promote fair competition in digital markets.

Reason Behind The Fine

Apple was fined €500 million for its App Store practices that restricted developers from directing users to alternative payment methods outside the App Store. This anti-steering policy was found to limit consumer choice and maintain Apple’s dominance in the app distribution market. The European Commission determined that such restrictions violated the provisions aimed at ensuring fair competition and user freedom. 

On the other hand, Meta received a €200 million fine for its pay or consent advertising model on Facebook and Instagram. This model required users to either consent to personalised data collection for targeted ads or pay a subscription fee for an ad-free experience.  The EU ruled this violated users rights to freely consent to data use, as required by the Digital Markets Act.

Reactions From Apple and Meta

Both companies have announced plans to challenge the EU fines. Apple criticized the decision, stating that it compromises user privacy and security while forcing the company to give away its technology for free. Meta argued that the EU’s actions unfairly target successful American businesses and impose different standards compared to European and Chinese companies. 

Previously, Apple avoided another fine in a separate investigation by making changes that allowed users to switch to other browsers or search engines more easily on iPhones. Regulators confirmed that these changes comply with the DMA and closed the investigation on Wednesday.