In a major enforcement move under its new tech regulations, the European Union (EU) has levied hefty fines against two of the world’s biggest tech firms — Apple and Meta — for breaching provisions of the Digital Markets Act (DMA).
The European Commission, which serves as the EU’s competition watchdog, announced on Wednesday a 500 million euro fine ($570 million) for Apple and a 200 million euro fine ($228 million) for Meta Platforms. These are the first major sanctions imposed under the landmark legislation, signalling a more aggressive stance from European regulators toward curbing the dominance of Big Tech.
A Landmark in Global Tech Regulation
The fines mark a pivotal moment in the EU’s regulatory push against digital monopolies, particularly those headquartered in the United States. The Digital Markets Act, enforced in 2023, is intended to level the playing field for smaller tech companies by enforcing greater transparency, fairness, and user control across digital platforms.
The commission concluded that both companies had failed to comply with key requirements of the DMA, particularly around app store access and user consent models.
Apple has been ordered to remove restrictions that prevent developers from directing users to cheaper alternatives outside the App Store ecosystem. The Commission highlighted that these restrictions not only impact consumer choice and competition but also sustain an unfair advantage for Apple.
Meta, the parent company of Facebook and Instagram, came under fire for implementing a controversial “pay or consent” model. Under this system, users could either opt to be tracked for targeted ads or pay for an ad-free version of the platforms. The EU ruled that this model violated users’ privacy rights and fair access principles and forced Meta to re-evaluate its monetization framework.
Apple and Meta Respond
Both Apple and Meta tech giants responded swiftly and sharply to the penalties.
Apple, in a public statement, rejected the decision, calling it “unfair targeting” by the EU:
“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.”
Meta echoed similar sentiments, accusing the Commission of double standards:
“The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards.”
“This isn’t just about a fine; the Commission is forcing us to change our business model, effectively imposing a multi-billion-dollar tariff on Meta,” the company added.
Both companies have two months to comply with the regulatory orders or risk additional daily fines of up to 5% of global annual turnover.
Loopholes, Revisions, and Closures
Interestingly, Apple avoided a separate fine related to how iPhones present browser choices after implementing changes to allow users to select third-party browsers more easily. This part of the DMA investigation was closed following compliance.
However, regulators are still pursuing Apple over its resistance to sideloading, a process that would let users install apps outside the App Store. The commission pointed out that Apple’s current conditions—including a newly introduced Core Technology Fee—make it financially difficult for developers to use third-party app distribution channels.
In contrast, Meta gained partial relief as its Marketplace was dropped from the DMA gatekeeper list. The EU said the decision was based on declining user numbers, bringing it below the regulatory threshold.
A Warning Shot to Big Tech
The EU maintains that its enforcement is measured and consistent with the DMA’s intent to protect consumers, encourage innovation, and foster competition.
“We have taken firm but balanced enforcement action against both companies, based on clear and predictable rules,” said the European Commission.
While these fines may intensify tensions with the United States—where former President Donald Trump has threatened tariffs against countries penalizing American firms—they underscore the EU’s commitment to ensuring Big Tech accountability.
As the Digital Markets Act continues to unfold, more tech giants may find themselves under the regulatory microscope in 2025 and beyond.