The European Commission has recently imposed significant fines on tech giants Apple and Meta, totalling €500 million (approximately $890 million) for Apple and €200 million ($356 million) for Meta. These penalties are part of the EU’s enforcement of its Digital Markets Act (DMA), a regulation aimed at ensuring fair competition in the digital economy.
Apple was fined for restricting app developers from directing users to cheaper purchasing options outside its App Store. The Commission accused the company of unfair practices that limit consumer choice. Meta, on the other hand, faced penalties for compelling users of Facebook and Instagram to choose between viewing ads or paying for an ad-free experience, which regulators viewed as undermining users’ right to freely consent to the use of their data.
Both companies are required to comply with the Commission’s directives within 60 days or face additional “periodic penalty payments.” Although the decisions were anticipated in March, officials postponed them due to rising tensions with the United States regarding trade and regulation.
The DMA aims to empower consumers and prevent large tech firms from monopolising digital markets. According to Henna Virkkunen, the Commission’s executive vice-president for tech sovereignty, the rules are designed to give users greater control over their data and allow businesses to communicate freely with customers. The executive stated that the actions taken against Apple and Meta address the removal of essential choices for users and challenge both companies to modify their practices.
Apple has expressed its intention to appeal the decision, claiming it has been unfairly singled out despite its compliance efforts. A spokesperson noted that the company has invested significant resources to align with the law, but feels the EU frequently changes the regulations. Similarly, Meta’s Chief Global Affairs Officer, Joel Kaplan, argued that the Commission is unfairly penalising American companies while allowing competitors from regions like China and Europe to operate under different standards.
Meta’s strategy concerning user consent faced scrutiny, particularly its introduction of a paid model to avoid advertisements based on personal data, which the Commission argues infringes on users’ rights. As of November, Meta also offered a less personalised ad experience without payment, but the Commission is assessing the effectiveness of this option and its overall impact.
Kaplan highlighted that the Commission’s actions not only represent a fine but an obligation to overhaul their business model, which could have significant financial implications for Meta and adversely affect European economic interests.