The European Union has fined Apple and Meta Platforms a combined €700 million (approximately $770 million) for violating the bloc’s Digital Markets Act (DMA)—a move that has not only intensified transatlantic tech tensions but could significantly reshape how the companies operate in Europe.
The European Commission, the EU’s executive arm, levied a €500 million fine against Apple and a €200 million fine against Meta, marking the first major enforcement of the DMA since it was enacted in 2022. The law was designed to curb the dominance of “gatekeeper” tech companies and promote fairer competition.
In addition to the fines, both companies received cease-and-desist orders targeting core elements of their business. For Apple, the focus is on its App Store, while for Meta, the commission objected to its model of requiring users to either accept personalized ads or pay for a subscription on platforms like Facebook and Instagram.
While the monetary penalties represent just a fraction—about 0.1%—of each company’s global revenue, the regulatory mandates could have more profound operational and financial implications. Companies found noncompliant beyond a 60-day window could face daily penalties of up to 5% of global daily revenue.
Strategic Fallout Amid Trade Talks
The timing of the sanctions is drawing attention in both Brussels and Washington. The Biden administration—along with former President Donald Trump, who is currently engaged in EU-U.S. trade discussions—has criticized European tech regulations as non-tariff trade barriers targeting American firms.
Trump has previously threatened retaliatory tariffs in response to such measures. In February, the administration issued a memo pledging to protect American businesses from what it called “overseas extortion.” Meta reportedly lobbied U.S. officials to intervene before the ruling was finalized.
Despite this, the European Commission insists that the enforcement action was not politically motivated. “These decisions have nothing to do with trade negotiations,” a spokeswoman said, noting that the DMA is administered independently of trade policy.
Core Issues with Apple and Meta
In Apple’s case, the commission ruled that the company failed to allow app developers to inform users—free of charge—about alternative purchasing options outside the App Store, violating the DMA’s user-choice mandates. Apple plans to appeal, calling the ruling harmful to user security and privacy.
Meta’s fine stems from its approach to personalized advertising. Regulators said forcing users to choose between tracking-based ads or paid subscriptions limits user freedom. Meta, too, is appealing, arguing the mandate would degrade its services and act as a de facto digital tariff.
The commission also advanced other regulatory actions on Wednesday:
- A new Apple probe was opened regarding external app downloading.
- A separate Apple case involving user-choice compliance was closed without penalty.
- Facebook Marketplace was removed from DMA obligations due to not meeting business-user thresholds.
As Europe tightens enforcement of its digital policies, these decisions signal that Big Tech’s playbook may no longer hold in the EU—and the global ripple effects may just be beginning.
