The European Union has issued its first major penalties under the Digital Markets Act (DMA), slapping Apple with a €500 million fine and Meta with a €200 million fine for breaching the bloc's rules aimed at reining in the dominance of Big Tech.
The move could escalate transatlantic tensions, with U.S. President Donald Trump already warning of potential tariffs on nations that target American tech giants.
Apple was sanctioned for preventing app developers from redirecting users to cheaper subscription offers outside its App Store—something now deemed a breach of EU law.
Meta was penalised for its controversial “pay-or-consent” model introduced in late 2023. Under this system, users of Facebook and Instagram could either consent to being tracked for personalised ads or pay for an ad-free version of the platforms. EU regulators said this model violated the DMA.
The Commission also appears keen to avoid provoking the U.S., especially given rising trade tensions under the Trump administration.
However, Apple remains under scrutiny for placing new fees and conditions—such as its Core Technology Fee—on developers using alternative app stores. Regulators say this disincentivises competition and continues to violate DMA principles.
Meta, meanwhile, has had its Marketplace platform removed from the list of services covered under the DMA, due to a drop in user numbers.
The move could escalate transatlantic tensions, with U.S. President Donald Trump already warning of potential tariffs on nations that target American tech giants.
Apple and Meta Push Back
Apple quickly confirmed it would challenge the fine, stating the Commission's actions were unfair and harmful to user privacy, product quality, and innovation.Meta also slammed the EU’s decision, calling it a blow to American competitiveness.
Why the Fines Were Issued
The fines follow a year-long investigation by the European Commission into whether the tech giants complied with new DMA requirements designed to open markets to smaller competitors.Apple was sanctioned for preventing app developers from redirecting users to cheaper subscription offers outside its App Store—something now deemed a breach of EU law.
Meta was penalised for its controversial “pay-or-consent” model introduced in late 2023. Under this system, users of Facebook and Instagram could either consent to being tracked for personalised ads or pay for an ad-free version of the platforms. EU regulators said this model violated the DMA.
Two Months to Comply
Both companies now have two months to comply with the European Commission’s orders or face daily penalties. However, sources have indicated that the relatively low fines reflect both the short duration of the infractions and a strategy that currently prioritises compliance over punishment.The Commission also appears keen to avoid provoking the U.S., especially given rising trade tensions under the Trump administration.
Other Investigations and Exemptions
Apple avoided a fine in a separate probe concerning its handling of browser options on iOS devices. After changes were made to allow users easier access to non-Apple browsers and search engines, the Commission said the company was now in compliance and closed that case.However, Apple remains under scrutiny for placing new fees and conditions—such as its Core Technology Fee—on developers using alternative app stores. Regulators say this disincentivises competition and continues to violate DMA principles.
Meta, meanwhile, has had its Marketplace platform removed from the list of services covered under the DMA, due to a drop in user numbers.
EU Sends Clear Message
Meanwhile, EU lawmaker Andreas Schwab urged the Commission to keep the pressure on other tech firms, including Google and Elon Musk’s X, warning against any enforcement delays.
Both companies are expected to challenge the decisions, setting up a potentially prolonged legal and political battle between Brussels and Silicon Valley.
