EU fines Apple and Meta a combined 700 million euros for violating DMA

The fines are relatively modest compared to previous penalties under the leadership of former EU antitrust chief Margrethe Vestager

European Union regulators have imposed fines totaling 700 million euros on Apple and Meta for violating new antitrust rules under the Digital Markets Act (DMA), marking the first sanctions under the legislation aimed at curbing the power of Big Tech.

Apple was fined 500 million euros, while Meta faced a 200 million euro penalty. These fines follow a year-long investigation into whether the companies were complying with the DMA, which seeks to open up markets dominated by large tech firms to smaller rivals.

Apple and Meta have both expressed their dissatisfaction with the decisions.

Apple criticized the European Commission for what it described as unfair targeting, arguing that the sanctions would negatively affect privacy, security, and innovation. Meta echoed similar sentiments, claiming the fines were an attempt to handicap successful American companies while allowing competitors from other regions to operate under different standards.

Both companies indicated they would challenge the fines, with Meta also emphasizing that the penalties were forcing it to alter its business model.

The fines are relatively modest compared to previous penalties under the leadership of former EU antitrust chief Margrethe Vestager.

The investigation revealed that Apple had imposed technical and commercial restrictions that prevented app developers from offering cheaper deals outside the App Store. Meta was found to have violated the DMA with its pay-or-consent model, which offered users a choice between being tracked for targeted ads or paying for an ad-free service.

Both companies have two months to comply with the orders or face daily fines.

In a separate investigation, Apple avoided a fine for its browser options on iPhones after making changes that allow users to switch to rival browsers and search engines more easily. However, the company was still charged for hindering users from sideloading apps, with its new fees disincentivizing developers from using alternative app distribution channels.

Meta’s Marketplace was also no longer considered a DMA gatekeeper after falling below the required user threshold.

EU antitrust chief Teresa Ribera stated that the enforcement actions were firm but balanced, highlighting the EU’s commitment to ensuring all companies operating within its jurisdiction respect its laws and values. The European Commission is also continuing investigations into other major tech firms, including Google’s advertising business and Elon Musk’s X, to maintain the integrity of its competition policies.

Monitoring Desk
Monitoring Desk
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