Apple (AAPL.O) has been fined 500 million euros ($570 million), and Meta (META.O) has been fined 200 million euros by European Union antitrust regulators. This marks the first penalties issued under the new Digital Markets Act (DMA), which aims to reduce the influence of Big Tech companies.
The EU found that Apple violated DMA rules by preventing users from sideloading apps and imposing conditions, such as the Core Technology Fee, which discourage alternative app distribution. Meta’s initial pay-or-consent model, introduced in November 2023, was also deemed non-compliant in the lead-up to November 2024.
Apple plans to contest its fine, arguing that the EU is unfairly targeting the company and undermining user privacy and security. Meta criticized the decision as well, claiming that the EU is restricting American businesses while applying different standards to Chinese and European companies. They argued that the necessary changes to their business model equate to a multi-billion-dollar tariff that would lead to inferior service.
These fines are considered relatively modest, likely due to the short duration of the violations and a focus on ensuring compliance. While Alphabet and X may also face potential EU scrutiny, the EU might be encouraged by a recent U.S. court ruling against Google’s dominance in online advertising. The EU competition authority has ordered Apple to lift restrictions that prevent app developers from directing users to external, cheaper options.
Meta is currently in discussions with the EU about a revised version of its consent model. Both companies have two months to comply or face further penalties. Apple previously avoided a fine in a different browser investigation after making changes to improve user choice.
Additionally, the EU retracted the gatekeeper designation for Meta’s Marketplace due to a decline in user numbers. EU antitrust chief Teresa Ribera emphasized the commitment to enforcing clear and predictable rules, while EU lawmaker Andreas Schwab urged continued investigations into Google and X, highlighting the importance of consistent enforcement.