EU Slams €700M Penalty on Apple, Meta
The European Commission on Wednesday fined Apple and Meta a combined 700 million euros for alleged violations of the EU’s Digital Markets Act (DMA), which governs major online platforms in the region.
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Apple was hit with a 500 million euro fine, while Meta was fined 200 million euros. Both companies have the option to challenge the penalties in court.
The fines could further strain EU-U.S. relations, especially in the area of trade. Republican leaders in Washington often view such penalties from Brussels as an indirect form of taxation on American tech giants.
However, the European Commission, the EU’s executive body, maintains that its actions are not politically motivated, stressing that its enforcement is “firm but balanced.”
EU Commission Vice-President Teresa Ribera stated that “Apple and Meta have failed to comply with the Digital Markets Act by adopting practices that increase the dependence of businesses and consumers on their platforms.”
According to a press release from the Commission, Apple is accused of limiting app developers’ ability to promote their services outside the App Store and of not proving that such restrictions are necessary or proportionate.
Apple has said it will appeal the decision, calling the ruling another instance of the European Commission unfairly targeting the company. “Today’s announcements reflect a pattern of decisions that undermine user privacy and security,” the company said.
“It also harms our products and compels us to give away our technology for free,” Apple added in its response.
Meta’s fine relates to its “pay-or-consent” model, which was in place between March and November 2024. Under this model, Facebook and Instagram users in the EU had to choose between paying for an ad-free experience or using a free version that included personalised advertising.
According to the European Commission, this setup breached the Digital Markets Act because it failed to offer users a clear alternative to use the platforms with less data tracking, while still receiving a service equivalent to the one with personalised ads.
Both Apple and Meta have been given 60 days to bring their practices into full compliance with the DMA, or they risk facing recurring penalty payments, the commission warned.
These fines mark the first official non-compliance rulings under the DMA, which came into effect in 2022. While significant, the penalties could have been higher—EU law allows fines of up to 10% of a company’s global annual turnover, and up to 20% for repeat violations.
In 2024, Apple reported revenues just under $400 billion, while Meta’s turnover was approximately $165 billion.
NAN/Oluchi
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