London – The European Union has imposed hefty fines on tech giants Apple and Meta, totaling €700 million, marking a significant enforcement of its digital competition law. The fines were issued for violations of the Digital Markets Act, which aims to regulate the behavior of dominant tech companies in the European market.
Apple and Meta, the parent company of Facebook, were fined €500 million and €200 million, respectively, by the European Commission. The penalties come amidst criticism from the Trump administration regarding what it perceives as the EU’s bias against American tech companies.
Meta’s chief global affairs officer, Joel Kaplan, expressed displeasure with the EU’s decision, accusing the Commission of unfairly targeting successful American businesses. He criticized the Commission for imposing what he described as restrictions that hinder Meta’s operations and negatively impact its users.
The investigation revealed that Meta had limited users’ ability to utilize versions of its platforms that process less personal data without incurring additional charges. Meta later introduced a new advertising model that required European users to choose between sharing personal data for personalized advertising or paying for an ad-free experience on Facebook and Instagram.
Additionally, Apple was found to have violated rules within the DMA related to app developers’ ability to inform customers of alternative offers outside of the App Store. The European Commission highlighted restrictions imposed by Apple that prevent consumers from accessing alternative and potentially cheaper offers.
Both Apple and Meta must pay the fines within 60 days according to the European Commission, or face additional financial penalties. Violations of the DMA can result in fines of up to 10% of a company’s annual global revenue, with repeat offenses carrying penalties of up to 20%.
Despite the substantial fines imposed on the tech giants, the amounts fall below the maximum penalty allowed under the law. The fines may further intensify accusations by President Donald Trump of the EU unfairly targeting American companies, as part of broader trade disputes between the EU and the US.
Overall, the fines levied on Apple and Meta underscore the EU’s commitment to enforcing regulations aimed at promoting fair competition and protecting consumer interests in the digital marketplace. The penalties send a strong message to tech companies operating in the EU about the consequences of breaching competition laws.