EU fines Meta and Apple a combined £600m for breaching digital laws
The European Commission has imposed significant fines on Apple and Meta, marking the first enforcement actions under the Digital Markets Act (DMA), which aims to promote fair competition and enhance consumer choice.
Apple has been fined €500m (£428.3m) for restricting app developers from directing users to alternative purchasing options outside its App Store.
The commission found that the iPhone maker’s practices limited customer access to more affordable offers, and thereby hindered competition.
In addition to the fine, the tech behemoth has been ordered to amend its App Store policies by late June to comply with the DMA. Failure to do so could result in additional daily penalties.
Meanwhile, Meta has received a €200m (£171.3m) fine for its ‘pay or consent’ advertising model, which required EU users to either pay for ad-free version of its social media platforms like Facebook and Instagram, or consent to personalised ads.
The commission determined that this approach did not provide users with a genuine choice, and violated data processing and user content rules.
Meta’s modifications to the model in November 2024 are currently under review.
Big tech fights back
Apple has announced plans to appeal the fine, arguing that the decision is unjust and undermines user privacy.
“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,” the company said.
Elsewhere, Meta has also disagreed with the claims, stating that the EU’s actions impose unfair burdens on American business. The tech leader said it was”attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards”.
Meta’s chief global affairs officer Joel Kaplan added: “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”.
Broader efforts and ongoing investigations
These fines form part of a broader effort by the EU to enforce digital competition rules and ensure that major big techs, designated as ‘gatekeepers’, do not abuse their market positions.
The commission has also closed an investigation into Apple’s compliance with DMA rules on browsers and default apps, acknowledging changes that have facilitates greater competition.
Yet, Apple faces further critique over its dealings with alternative app marketplaces, which could lead to additional penalties.
The enforcement actions have the potential to strain relations between the EU and the US.
President Donald Trump’s administration has criticised the EU’s digital regulations, viewing them as unfairly targeting US firms.
But, the commission maintains that the DMA is applied impartially to protect consumers and promote competition.