The European Union has escalated its enforcement of the Digital Markets Act (DMA), issuing landmark penalties as the EU fines Apple and Meta for non-compliance with the bloc’s new digital competition rules.
According to The Wall Street Journal, Apple faces a €500 million fine (approximately $568 million), while Meta has been fined €200 million (around $227 million). Both companies said they would appeal the rulings.
Why the EU Fined Apple
The European Commission alleges that Apple violated DMA provisions by restricting app developers from informing users about alternative purchasing options for digital products outside the App Store. This limitation, according to regulators, undermines fair competition and user choice.
The EU views Apple’s App Store policies as creating a closed ecosystem that unfairly favors its own payment system while blocking third-party developers from offering cheaper or more flexible alternatives.
In a statement, Apple strongly rejected the ruling:
“The EU has unfairly targeted Apple. These decisions are bad for the privacy and security of our users, bad for product innovation, and force us to give away our technology for free.”
Why the EU Fined Meta
Meta was penalized for its controversial approach to ad personalization. The company currently requires users of Instagram and Facebook to either accept personalized ads or pay for an ad-free subscription.
The Commission argues this “consent-or-pay” model violates the DMA, which requires platforms to offer meaningful consent for data usage. Meta’s recent introduction of a “less-personalized ads” option is still under EU review.
Joel Kaplan, Meta’s Chief Global Affairs Officer, sharply criticized the decision:
“This isn’t 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.”
Kaplan also accused the EU of double standards, saying it is trying to “handicap successful American businesses while allowing Chinese and European companies to operate under different rules.”
Cease-and-Desist Orders and Political Tensions
In addition to the fines, the EU has issued cease-and-desist orders against both companies, mandating that they immediately comply with DMA provisions.
These actions come amid growing transatlantic tension, with U.S. presidential candidate Donald Trump criticizing EU digital regulations as non-tariff barriers to trade. Trump has suggested that retaliatory tariffs could be introduced if U.S. tech firms continue to be targeted.
What the Digital Markets Act Means for Big Tech
The Digital Markets Act, enforced since early 2024, aims to curb anti-competitive practices among so-called “gatekeepers” — large tech firms that dominate core platform services. Under the law, gatekeepers must:
- Allow third-party services to interoperate
- Enable businesses to communicate freely with users
- Avoid combining user data across platforms without explicit consent
Failure to comply can result in fines of up to 10% of global annual turnover, or 20% for repeat offenses.
What’s Next for Apple and Meta?
Both Apple and Meta plan to appeal the EU fines, likely escalating the matter to the EU General Court in Luxembourg. Legal proceedings could take several months or even years to resolve.
Meanwhile, regulators are expected to monitor compliance closely, and more enforcement actions may follow as other gatekeepers — including Google, Amazon, and Microsoft — face similar scrutiny under the DMA.
Internal Link: Explore: What the Digital Markets Act Means for Global Tech
A Turning Point in Global Tech Regulation
As the EU fines Apple and Meta, it sends a strong signal to Silicon Valley: business models built around user lock-in and data monetization are now in the regulatory crosshairs.
Whether the companies succeed in their appeals or not, the EU’s actions mark a significant shift in digital policy enforcement, potentially redefining how major tech platforms operate — not just in Europe, but globally.
