The European Union socked Apple with a fine of 500 million euros ($570 million) Wednesday for breaking antisteering rules in the Digital Markets Act. It also fined Meta 200 million euros for DMA violations.
The two companies face further fines if they don’t make the changes the EU demands.
EU hits Apple with 500 million euro fine over DMA violations
The purpose of the European Union’s Digital Markets Act is to open up Big Tech to more competition. It enforces a broad spectrum of changes, with hefty fines for noncompliance.
For one, Apple must allow EU iPhone users to sideload applications outside the App Store — which is turning out to be a problem. Apple also must allow software developers to “steer” customers to offers and payment systems outside the App Store. Apple has allegedly been dragging its feet, though.
“The European Commission found that Apple breached its anti-steering obligation under the Digital Markets Act,” the EC said in a press release Tuesday. “Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store. Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers.”
Meta fined for its ‘consent or pay’ model
The DMA also requires big tech companies to secure users’ consent before combining their personal data across various services. Users who do not consent must be given access to a similar but less personalized alternative.
As a result, Meta offered its EU users of Facebook and Instagram a choice between consenting to personal data combination for personalized advertising or paying a monthly subscription for an ad-free service.
“The Commission found that this model is not compliant with the DMA, as it did not give users the required specific choice to opt for a service that uses less of their personal data but is otherwise equivalent to the ‘personalised ads’ service,” the EC said. “Meta’s model also did not allow users to exercise their right to freely consent to the combination of their personal data.”
As a result, the EU hit Meta with a fine of 200 million euros ($227 million).
Not the end of the matter
If Apple and Meta don’t make the changes the EU insists upon, more fines could follow.
“Apple and Meta are required to comply with the Commission’s decisions within 60 days, otherwise they risk periodic penalty payments,” the EC said.
Apple plans to appeal the decision, according to The Verge. And Meta might appeal as well, according to The New York Times.
The European Union also could face retaliation from the Trump administration. In February, the White House pledged to “defend American companies and innovators from overseas extortion.” The memo specifically calls out the Digital Markets Act and the Digital Services Act for U.S. scrutiny.
Meta’s chief global affairs officer accused EU regulators of targeting U.S. tech companies with what amounts to tariffs.
“The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards,” Meta’s Joel Kaplan said in a statement after the EU levied its fines on his company and Apple. “This isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service.”
