Apple & Meta Fined €700m By EU Commission

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The Commission of the European Union (EU) has fined Apple and Meta a combined total of €700m (£599m). These fines are for the companies' violation of the Digital Markets Act (DMA) and are the first penalties to be applied since the 2024 legislation came into force.

It is aimed at reducing the market power of big technology firms and both companies have 60 days to comply or risk further fines.

The penalties threaten to cause more tension between the EU and US President Trump, as the two sides discuss a deal to avoid imposition of sweeping tariffs on the EU.

Apple has been fined €500 million for stopping app developers from offering cheaper deals outside the App Store. Meta has a €200 million fine for its “pay or share data” model on Facebook and Instagram, which the EU said violated users’ rights. "We have a duty to protect the rights of citizens and innovative businesses in Europe," Commissioner Henna Virkkunen said in a statement.

The two tech firms have reacted angrily, with Meta accusing the EU of "attempting to handicap successful American businesses" and Apple saying it was being "unfairly targeted" and forced to "give away our technology for free."

The fines are lower than some of those issued by the EU in the past but come at an extremely sensitive time, with trade tensions with the US heightened.

The European Commission started both investigations in 2024 following introduction of the DMA.

This case against Apple was over its App Store. The Commission says it must freely offer alternative app marketplaces to users and app developers, and says Apple was in breach of this.

Apple said the Commission had made "a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free." It also accused the Commission of moving the goal posts during their meetings.

Meta's fine was over the way it handled cookies, the bits of code embedded into websites, which collect information data about users. Meta introduced a "consent or pay" model on Facebook and Instagram, which meant users had to choose between allowing cookies to track them, or pay a monthly subscription.

The Commission says this model did not allow users to freely consent to how their data was used.
In both cases, the Commission says the size of the fine takes into account "the gravity and duration of the non-compliance".

Meta said the ruling means Chinese and European companies are allowed to operate to different standards compared to American businesses. "This isn't just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service," it said in a statement.

Both organisations strongly denied wrongdoing. Apple said it will appeal, calling the fine unfair and harmful to user privacy and security. Meta also hit back, saying the EU was hurting successful US firms while giving others easier treatment. They claimed the rules force them to change their business models unfairly.

The size of the fines highlight the EU’s seriousness about data and technology regulation, even though it risks upsetting trade talks with the US. Despite vocal criticism, the EU has been resolute in requiring US companies operating in EU jurisdictions to follow the law and treat their European users fairly.

Image: Ideogram

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