The European Commission has fined Apple and Meta a combined €700 million for violations of the Digital Markets Act (DMA), marking the first enforcement action under this new regulation aimed at curbing anti-competitive practices by tech giants. Apple received a €500 million penalty, while Meta was fined €200 million.
The Commission claims Apple restricts app developers from promoting alternative payment options outside its App Store, denying users access to potentially cheaper offers. Meta, on the other hand, was penalized for its “pay-or-consent” model on Facebook and Instagram, which allegedly doesn’t provide users with a meaningful choice to opt out of personalized advertising without paying.
Apple has already announced plans to challenge the fine, arguing it has made significant efforts to comply with the DMA, including extensive development work and multiple engagements with the Commission. Meta, meanwhile, introduced a revised version of its ad-supported model in November 2024, which the Commission is still evaluating. The fine pertains to the period between March and November 2024.
These actions could heighten tensions between the U.S. and EU, as American officials suggest the DMA may unfairly target U.S. tech firms. However, the EU insists its enforcement is unrelated to ongoing trade disputes.
The DMA allows for fines of up to 10% of global turnover for non-compliance, increasing to 20% for repeat offenses. With Apple’s 2024 revenue nearing $400 billion and Meta’s around $165 billion, the current penalties could have been much higher.
