Apple and Meta fined €700M for breaching EU digital rules

The European Commission has imposed fines totalling €700 million on Apple and Meta for violating the bloc’s Digital Markets Act (DMA), marking the first penalties under landmark legislation aimed at curbing Big Tech’s power.

Apple received a €500 million fine for restricting app developers from directing users to alternative distribution channels outside its App Store, while Meta was hit with a €200 million penalty for its “pay or consent” model that failed to give users appropriate choices regarding their personal data.

Teresa Ribera, executive vice-president for clean, just and competitive transition at the Commission, said: “We have taken firm but balanced enforcement action against both companies, based on clear and predictable rules. All companies operating in the EU must follow our laws and respect European values.”

The fines come amid rising tensions with the US, as President Donald Trump has previously threatened to levy tariffs against countries that penalise American companies. The sanctions are notably modest compared to previous EU penalties, with sources suggesting this reflects both the short duration of the breaches and possibly a desire to avoid potential US retaliation.

Apple immediately announced it would challenge the fine. “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 in an emailed statement.

Meta also condemned the decision, with chief global affairs officer Joel Kaplan stating: “The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards. 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.”

Under the DMA, which became legally binding in March 2024, app developers should be allowed to inform customers of alternative offers outside Apple’s App Store. The Commission found Apple’s restrictions prevented consumers from fully benefiting from potentially cheaper offers elsewhere.

Meta’s fine relates to its binary model introduced in November 2023, which gave Facebook and Instagram users a choice between consenting to personal data use for advertising or paying for an ad-free service. The Commission ruled this violated the DMA by failing to offer users a less data-intensive but equivalent alternative to the personalised ads service.

Both companies have 60 days to comply with the Commission’s orders or face further penalties. The Commission also closed an investigation into Apple’s user choice obligations after the company made changes allowing EU users to uninstall apps like Safari and more easily choose alternative default browsers.

European consumer group BEUC welcomed the penalties. “Apple and Meta have had ample time to comply with the Digital Markets Act but instead have delayed compliance and tried to twist the rules to their advantage,” said director general Agustín Reyna.

The EU is continuing to investigate potential DMA violations by other tech giants, including Google and X (formerly Twitter).