The European Union has imposed a combined fine of €700 million, or nearly $800 million, on Apple and Meta for violating the bloc’s groundbreaking Digital Markets Act (DMA).
This marks the first time that sanctions have been imposed under the new regulation, which is intended to limit the influence of large technology companies.
Apple was issued a €500 million ($570 million) penalty for limiting the manner in which app developers communicate with users regarding alternative sales and offers.
Meta was hit with a €200 million (nearly $230 million) fine for its controversial “pay or consent” model.
This model necessitates users in the EU to either pay for ad-free access to Facebook and Instagram or acquiesce to targeted advertising.
The European Commission, the EU’s executive authority, conducted a yearlong investigation to determine whether the companies complied with the DMA, which was implemented last year. The penalties are the result of this investigation.
In addition to the sanction, Apple has been issued a cease-and-desist order that mandates the implementation of additional modifications to its App Store operations by the end of June.
The Commission may impose daily penalties on the company for persistent violations if it fails to comply.
In addition, officials are currently conducting an evaluation of the modifications that Meta implemented late last year to determine whether the updated model now complies with the regulations.
Both Apple and Meta criticized the EU decision, claiming that it was discriminatory and detrimental to their services.
Apple stated in a statement that the alliance was “unfairly targeting” the company in a manner that compromises the privacy and security of its users and its products, while also requiring it to “give away our technology for free.”
Meta characterized the action as an attempt to “hinder successful American businesses while allowing Chinese and European companies to operate under different standards.”
Joel Kaplan, Meta’s Chief Global Affairs Officer, stated, “This is not merely about a fine.”
“The Commission’s requirement to alter our business model effectively imposes a multi-billion-dollar tariff on Meta, while simultaneously mandating that we provide a substandard service.”
The Commission emphasized that the sanctions imposed on Wednesday are procedural in nature and are considerably lower than the penalties that have been previously imposed under the EU’s antitrust regulations.
These regulations are designed to promote competition and dissolve companies that the Commission considers to have a monopoly in the single market.
Apple was fined €1.8 billion ($2.05bn) last year for exploiting its dominant position in music streaming, while Meta was fined €797 million ($909m) for promoting its classified advertisements service on its social media platforms.
However, the continued enforcement of the regulations has the potential to escalate tensions with Washington, where President Donald Trump has previously threatened to impose additional tariffs on countries that penalize United States companies.
The White House issued a warning in February that it would explore countermeasures in response to the bloc’s digital regulations, which encompass the Digital Media Act (DMA) and the Digital Services Act, a distinct law that targets disinformation online.
However, pressure is also increasing on Big Tech within the United States. Meta’s acquisitions have been accused of stifling competition, which could necessitate the sale of Instagram and WhatsApp. Consequently, the company is currently on trial.
Antitrust lawsuits are also being pursued against Apple and Amazon, while Google has lost two significant battles in the past year due to its dominance in digital advertising and internet search.
Meta stated that it is probable that it will appeal the European Commission’s decision, characterizing it as a deliberate assault on American corporations.
