EU Fines Meta and Apple $797 Million Under Digital Markets Act | Big Tech Crackdown

By Evans Momodu, published 13:27

The EU has fined Meta and Apple $797 million for violating the Digital Markets Act, targeting Meta's ad practices and Apple’s App Store restrictions. Read how this impacts US tech giants.

In a landmark enforcement of the European Union’s Digital Markets Act (DMA), regulators have imposed a combined €700 million ($797 million) fine on American tech giants Apple and Meta. The move escalates tensions between the EU and the U.S., as critics label the penalties a targeted attack on U.S.-based digital platforms.

The European Commission, the EU's executive body, announced on Wednesday that Apple (AAPL) was fined €500 million ($570 million) and Meta Platforms (META), the parent company of Facebook and Instagram, was fined €200 million ($228 million).

Meta's Chief Global Affairs Officer, Joel Kaplan, condemned the ruling, describing it as an attempt to “handicap successful American businesses.” He added, “This fine isn't just monetary—it effectively forces a fundamental shift in our business model, akin to a multi-billion-dollar tariff.”

At the centre of the Commission’s case is Meta’s “consent or pay” model introduced in late 2023. Under this system, users in the European Union had to either agree to extensive personal data tracking for personalised ads or pay a subscription fee for an ad-free experience. Regulators determined this practice violated EU digital privacy standards.

Although Meta has since introduced a new ad-supported model that allegedly processes less personal data, the Commission is currently reviewing whether this revised system complies with the DMA.

Apple was penalized for breaching the DMA’s “steering” provision. This rule requires that developers be allowed to inform users of alternative purchase options outside of Apple’s App Store—without restrictions or added fees.

According to the Commission, Apple imposed limitations that prevented users from accessing cheaper alternatives, thereby reducing consumer choice.

An Apple spokesperson called the decision unfair, saying it forces the company to “give away its technology for free.” The representative added, “We’ve invested significant engineering hours to meet DMA requirements, yet the Commission continues to shift expectations.”

Both companies are required to pay their respective fines within 60 days to avoid further financial penalties. The European Commission emphasized that the size of the fines reflects the "seriousness and duration" of the violations.

This marks the EU’s first major use of its newly implemented Digital Markets Act—legislation designed to curb monopolistic behaviour by so-called "gatekeepers" in the digital economy. The fines could set a precedent for further crackdowns on Big Tech's operations in Europe.

As legal battles and appeals loom, the global tech landscape may be on the verge of a major realignment, especially for American firms operating under growing international scrutiny.
Source: CNN