The European Union has imposed a combined €700 million ($797 million) in fines on Apple and Meta, marking the first enforcement of its Digital Markets Act (DMA), a landmark law aimed at curbing the dominance of major tech companies in Europe.
On Wednesday, the European Commission announced a €500 million fine against Apple for restricting app developers’ ability to direct users to cheaper alternatives outside the App Store. Meta was fined €200 million for implementing a “pay or consent” model on Facebook and Instagram, forcing users to either allow extensive personal data tracking for targeted ads or pay for an ad-free experience.
The year-long investigation found that Apple’s policies discourage sideloading and alternative app stores on iOS devices, limiting consumer choice and competition. Meanwhile, Meta’s subscription model breached DMA rules by not offering a “less personalized but equivalent alternative” to users who refuse data tracking.
Both companies have 60 days to comply with the EU’s directives or face additional penalties. Apple has vowed to contest the fine, calling the decision unfair and harmful to user privacy and security. Meta criticized the ruling as an attempt to handicap successful American companies while allowing Chinese and European firms to operate under different rules.
This enforcement signals the EU’s increasing regulatory scrutiny of Big Tech, aiming to ensure fair competition and protect consumer rights in the digital market. The fines are significant but below the maximum penalties allowed under the DMA, which can reach billions.