European Commission has imposed landmark fines on tech giants Apple and Meta in the first enforcement actions under the Digital Markets Act (DMA), a new regulatory framework designed to enhance consumer choice and ensure fair competition in the digital economy.
Apple was fined €500 million (£428.3 million) for restricting app developers from guiding users to alternative purchasing options outside its App Store, a practice the commission said limited access to more affordable offers and stifled competition.
The commission has ordered Apple to amend its App Store policies by late June to comply with the DMA, warning that failure to do so could result in further daily penalties.
Meta, the parent company of Facebook and Instagram, was fined €200 million (£171.3 million) over its ‘pay or consent’ model, which required European Union users to either pay for an ad-free experience or consent to personalised advertising.
The commission found that this model failed to offer users a genuine choice and violated rules governing data processing and user consent. Meta’s revisions to this model, made in November 2024, are currently under review by the EU.
Both companies have pushed back against the commission’s decisions. Apple announced plans to appeal, stating that the ruling was unjust and detrimental to user privacy and security.
“Today’s announcements are yet another example of the European Commission unfairly targeting Apple in 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,” the company said.
Meta also criticised the EU’s approach, claiming that it imposes undue burdens on successful American companies while allowing competitors from China and Europe to operate under different standards. Joel Kaplan, Meta’s chief global affairs officer, said, “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.”
The fines are part of a broader effort by the EU to clamp down on dominant digital platforms, known as ‘gatekeepers’, and ensure they do not abuse their market positions.
The commission has also concluded an investigation into Apple’s compliance with DMA rules on browsers and default apps, acknowledging changes that have opened up more space for competition.
However, Apple remains under scrutiny for its handling of alternative app marketplaces, which could attract additional penalties.
The enforcement measures may further strain transatlantic relations, with some in the United States, including former President Donald Trump’s administration, criticising the EU’s digital regulations as disproportionately targeting American firms.
Despite the pushback, the European Commission insists that the DMA is enforced impartially to safeguard consumer rights and foster a level playing field in the digital market.
