The European Union issues its first fines under the Digital Markets Act, penalizing Apple €500m over App Store practices and Meta €200m for handling user data, sparking angry reactions from both tech giants
[dropcap]I[/dropcap]n a significant move to curb the power of big technology firms, the European Union has today announced fines totaling €700m (£599m) against Apple and Meta.
Also read: Meta faces multiple lawsuits in Japan over fraudulent investment Ads
These are the first penalties issued under recent landmark legislation aimed at fostering competition and fairness in the digital marketplace.
Apple has been levied a fine of €500m (£428m) concerning its App Store practices, while Meta faces a €200m (£171m) fine for its handling of user data.
Commissioner Henna Virkkunen emphasized the EU’s commitment, stating, “We have a duty to protect the rights of citizens and innovative businesses in Europe.”
Both tech giants have reacted sharply to the EU’s decision. Meta accused the EU of “attempting to handicap successful American businesses,” while Apple expressed its belief in being “unfairly targeted” and forced to “give away our technology for free.”
While these fines are substantial, they are lower than some previous penalties issued by the EU. However, against the backdrop of heightened economic tensions with the United States, they carry the risk of further straining relations with US President Donald Trump, who has previously imposed tariffs on EU imports, accusing the bloc of “taking advantage” of America.
EU spokesperson Arianna Podesta, however, insisted on the separation of these issues, telling the BBC, “This is about enforcement, it’s not about trade negotiations.” The White House has been contacted for comment.
The European Commission, the EU’s executive body, initiated both investigations last year under the Digital Markets Act (DMA), a new law designed to promote fairness within the tech sector.
The case against Apple centered on its App Store. The Commission asserts that Apple must allow alternative app marketplaces to freely operate on its platform, providing choice to both users and app developers. The EU concluded that Apple was in violation of this requirement.
We have a duty to protect the rights of citizens and innovative businesses in Europe,” stated Commissioner Henna Virkkunen.
Meanwhile, Meta’s fine stemmed from its handling of cookies – small pieces of code embedded in websites that collect user information.
Meta had introduced a “consent or pay” model on its Facebook and Instagram platforms, requiring users to either consent to cookie tracking or pay a monthly subscription.
The Commission determined that this model did not provide users with genuine free consent regarding the use of their data.
In both cases, the Commission stated that the size of the fines reflects “the gravity and duration of the non-compliance.”
Both Apple and Meta have been given 60 days to comply with the EU’s directives or face the possibility of further penalties.
Commissioner Teresa Ribera stated, “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.
As a result, we have taken firm but balanced enforcement action against both companies, based on clear and predictable rules.”
Apple expressed its strong disagreement with the Commission’s findings, stating that the EU had made “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 also accused the Commission of “[moving] the goal posts” during their discussions.
Meta echoed these sentiments, arguing that the ruling creates a double standard, allowing Chinese and European companies to operate under different regulations compared to American businesses.
Also read: Meta is hoping Apple’s Vision Pro can help save the metaverse
“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,” the company said in its statement.
