EU Fines Apple and Meta Over Digital Markets Act Violations

Apple and Meta Platforms (NASDAQ:META) have been fined €500 million ($570 million) and €200 million respectively by the European Commission for breaching the EU’s Digital Markets Act (DMA), a regulation designed to limit the dominance of tech giants and promote fair competition.

According to the Commission, Apple (NASDAQ:AAPL) failed to comply with DMA requirements by restricting App Store developers from freely informing users about alternative purchasing options outside the App Store. This limitation prevented consumers from accessing potentially cheaper offers, undermining competition and consumer choice.

Meta’s penalty stems from its “Consent or Pay” model on Facebook and Instagram, which forces EU users to either consent to personalized data use across both platforms or pay for an ad-free experience. The Commission determined this model failed to offer users a genuinely equivalent alternative that used less personal data, violating their right to freely consent.

Both companies have been issued cease-and-desist orders. While EU regulators can impose penalties of up to 10% of global revenue, the current fines remain well below that threshold. Apple plans to appeal the decision, arguing the ruling compromises user privacy and security and unfairly demands free access to proprietary technology. Meta criticized the penalty as a politically motivated move targeting U.S. firms, pointing to the timing of the announcement around recent transatlantic trade talks.

The enforcement of the DMA signals the EU’s intent to curb Big Tech’s influence and protect competition in digital markets. As regulatory scrutiny intensifies, global tech firms may need to reevaluate their business practices across Europe.