The European Union has imposed its first fines under the new Digital Markets Act (DMA), hitting Apple and Meta with a combined €700 million (approximately $800 million) for violating the landmark regulation aimed at curbing the dominance of major tech companies.
Apple received the larger penalty—€500 million ($570 million)—for restricting how app developers can inform users about alternative purchasing options outside its App Store. Meta was fined €200 million ($230 million) for its controversial “pay or consent” model, which requires EU users to either pay for ad-free access to Facebook and Instagram or consent to targeted advertising.
The sanctions come after a year-long investigation by the European Commission into whether both companies were in compliance with the DMA, which took effect last year.
In addition to the fine, Apple has been ordered to revise its App Store policies by late June or face daily penalties for non-compliance. The Commission is also assessing recent changes Meta made to its advertising model to determine if it now meets regulatory requirements.
Both companies have pushed back against the EU’s actions. Apple accused the bloc of unfairly targeting it in ways that undermine user privacy and force the company to give away its proprietary technology. Meta similarly criticized the ruling, arguing it imposes a “multi-billion-dollar tariff” on the company while allowing non-U.S. firms to operate under looser rules.
“This isn’t just about a fine,” said Joel Kaplan, Meta’s Chief Global Affairs Officer. “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.”
The Commission emphasized that the fines are procedural and considerably lower than penalties issued under its broader antitrust laws. Last year, Apple was fined €1.8 billion ($2.05 billion) for stifling competition in music streaming, while Meta faced a €797 million ($909 million) penalty for favoring its own classifieds service.
The crackdown, however, risks straining EU-U.S. relations. In February, the White House warned it might pursue countermeasures against the EU’s digital regulatory push, which includes both the DMA and the Digital Services Act, aimed at tackling online disinformation.
Meanwhile, Big Tech is facing growing scrutiny within the U.S. as well. Meta is currently in court over antitrust allegations that could force it to divest Instagram and WhatsApp, while Apple, Amazon, and Google are also facing legal challenges related to market dominance.
Meta said it plans to appeal the Commission’s decision, calling it a targeted attack on successful American companies.
Edited by Nzubechukwu Eze.
