EU fines Apple and Meta nearly $800 million for Digital Markets Act violations

New Delhi: The European Union has imposed fines totalling €700 million ($798 million) on tech giants Apple and Meta for breaching its Digital Markets Act (DMA), marking the first penalties under the landmark regulation aimed at curbing Big Tech’s dominance. 

The fines announced by the European Commission come at a time of heightened trade tensions with the United States, raising concerns about potential retaliation from the Trump administration.

Apple faced a €500 million ($570 million) penalty for violating DMA rules by imposing restrictive “anti-steering” policies in its App Store. The commission found that Apple prevented app developers from freely directing users to alternative purchasing channels, limiting competition and consumer choice. Alongside the fine, Apple received a cease-and-desist order to remove these restrictions by late June or face further sanctions. 

Meta, meanwhile, was fined €200 million ($228 million) for its “pay or consent” model, which required European users of Facebook and Instagram to either allow targeted advertising or pay for ad-free access. The EU deemed this practice an illegal restriction on user data control.

The penalties follow a year-long investigation into the companies’ compliance with the DMA, which took effect in 2024 to ensure fair competition in digital markets. EU officials emphasised that the fines reflect the bloc’s commitment to enforcing its rules impartially, regardless of a company’s origin. “We don’t care where a company is located,” said Commission spokesperson Thomas Regnier. “Be it Chinese, American, or European, you must play by the rules in the EU.”

However, the timing of the fines has sparked controversy. US President Donald Trump has repeatedly criticised the EU for targeting American tech firms, labelling the DMA and similar regulations as “economic extortion.” 

Earlier this month, Trump imposed 10% “reciprocal” tariffs on EU goods, citing unfair treatment of US tech giants, though a 90-day pause on escalating tariffs has opened a window for trade negotiations.

Both companies plan to appeal the fines. Apple argued that the EU’s decision is “unfair” and harms user privacy and security, claiming it has invested “hundreds of thousands of engineering hours” to comply with the DMA. “The Commission continues to move the goalposts,” Apple said in a statement. 

Meta’s chief global affairs officer, Joel Kaplan, went further, accusing the EU of imposing a “multi-billion-dollar tariff” by forcing changes to its business model. Kaplan argued that the restrictions on personalised advertising hurt European businesses reliant on Meta’s ad platform.

The EU noted that Meta’s fine was moderated due to recent efforts to introduce a less data-intensive ad model, which is under review. The Commission also closed a separate probe into Apple’s compliance with DMA rules on browsers and default apps, citing progress in opening its iOS ecosystem to competitors like Mozilla.

Within the US, Big Tech faces parallel scrutiny. Meta is on trial over allegations of anti-competitive acquisitions, while Apple battles a monopolisation lawsuit. Despite trade disputes, EU and US regulators share some alignment on reining in tech giants, though the EU’s aggressive fines have drawn particular ire.