(Credit: JHVEPhoto/Shutterstock)
The European Union (EU) has fined two of the world’s biggest tech companies—Apple and Meta—€700 million (roughly $570 million) for breaches of its Digital Markets Act (DMA) legislation, the first penalties for DMA non-compliance.
Apple vs. Third-Party App Stores
Apple’s fine is tied to its App Store policies. In early 2024, it was forced under the DMA to let users download apps from third-party stores in the EU. It complied, but regulators say Apple has restricted developers from promoting those options in their own apps.
"Consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers," the European Commission says. "The company has failed to demonstrate that these restrictions are objectively necessary and proportionate."
Alongside a €500 million fine, the European Commission has ordered Apple to remove limitations on app developers so they can promote alternative stores.
Meta Targeted Ads vs. User Privacy
Meta’s €200 million fine (roughly $227 million) is tied to how two of its services handled cookies between March and November 2024. In late 2023, Facebook and Instagram introduced what the European Commission calls a "Consent or Pay" advertising model, letting people in the EU pay about $10.50 per month to remove ads on the apps.
According to the EU, that option was "not compliant with the DMA, as it did not give users the required specific choice to opt for a service that uses less of their personal data." In November 2024, Meta introduced a new system that it says uses less personal data to display advertisements, which the commission "is currently assessing."
Nonetheless, Meta is being fined for the time period before that new system was introduced.
In some good news for the social media giant, the EU says that Facebook Marketplace will no longer be designated under the DMA since it had less than 10,000 business users in 2024.
'Falling Short of Compliance'
"The Digital Markets Act is a crucial instrument to unlock potential, choice, and growth by ensuring digital players can operate in contestable and fair markets," says Teresa Ribera, EVP for Clean, Just and Competitive Transition at the European Commission. "It protects European consumers and levels the playing field.
“Apple and Meta have fallen short of compliance with the DMA by implementing measures that reinforce the dependence of business users and consumers on their platforms," she adds.
Both companies must pay the fines within 60 days or risk increasing fines for each day of nonpayment. Apple says it will appeal, and Meta is likely to do the same, The New York Times reports. We have contacted Apple and Meta for comment.
In 2024, the EU fined Apple $1.95 billion for violating antitrust rules.