The European Union has imposed significant fines on two of the world’s largest tech companies—Apple and Meta—under its newly enforced Digital Markets Act (DMA). The combined penalties amount to €700 million, or about $797 million, marking the first time the EU has levied such fines using its strengthened digital competition rules.
Apple faces a €500 million ($570 million) fine, while Meta has been hit with a €200 million ($228 million) penalty. Both companies are accused of violating core principles of the DMA, which aims to ensure fair competition and greater consumer choice in the digital marketplace.
Meta’s Global Affairs Chief, Joel Kaplan, condemned the ruling, claiming that the EU is unfairly penalizing American firms. “This isn’t merely a fine,” Kaplan argued. “The Commission is forcing us to alter our business operations in a way that amounts to a multibillion-dollar tariff and results in a worse experience for our users.”
The European Commission, the EU’s executive branch, conducted a detailed investigation and determined that Meta failed to offer European users a meaningful choice between personalized ads and an alternative that used less of their personal data—unless users were willing to pay. In late 2023, Meta implemented a “consent or pay” model across Facebook and Instagram, compelling users to either agree to data tracking for targeted advertising or pay for an ad-free version. Although Meta later introduced a free option with reduced data use, EU regulators are still evaluating whether this alternative meets legal standards.
Apple, on the other hand, was found to have violated the DMA’s “steering” provision. This rule allows developers to inform users about cheaper or alternative payment methods outside Apple’s App Store, and to guide users to those options. However, according to the EU, Apple placed restrictions that limited users’ access to such alternatives, ultimately preventing them from making more cost-effective purchasing decisions.
In response, Apple stated that the fine represents an ongoing pattern of bias from European regulators. A company spokesperson said, “This is yet another example of the Commission forcing us to give away our intellectual property for free. We’ve spent substantial resources adapting to this new law, often making changes that our customers did not request.”
Apple added that it would challenge the ruling, claiming that the Commission keeps changing compliance expectations without clear guidance. “Despite numerous consultations, the rules seem to shift constantly,” the company argued.
According to the European Commission, the size of each fine reflects both the seriousness and duration of the violations. The companies have been given 60 days to pay, or risk facing additional financial consequences. Under the DMA, firms that breach the rules can face penalties of up to 10% of their global annual revenue, or up to 20% for repeat offenses.
While Apple and Meta’s fines fall well below these maximum thresholds—given their 2023 revenues of $391 billion and $164 billion, respectively—the actions are likely to fuel political tension. Some U.S. officials have accused the EU of using regulation to unfairly target American technology firms.
As the global debate over digital sovereignty and fair competition continues, these penalties mark a turning point in how major tech platforms operate in Europe—and may foreshadow stricter enforcement to come.
