The European Union (EU) has imposed a 700 million ($797 million) fine on Apple and Meta for violating its digital competition law, media reports said on Thursday.
The penalties for breaching the Digital Markets Act come amid attacks on the EU by the Trump administration for what it sees as the bloc’s unfair targeting of American companies
The European Commission, the EU’s executive arm, said Wednesday that it has fined Apple (AAPL) and Facebook owner Meta (META) 500million ($570 million) and 200 million ($228 million) respectively, the report said.
Meta’s chief global affairs officer, Joel Kaplan, criticised the EU’s decision, claiming it aimed to “disadvantage successful American businesses.”
“This isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multibillion-dollar tariff on Meta while requiring us to offer an inferior service,” Kaplan added.
The European Commission found that Meta did not offer users access to platforms that process less personal data without a fee during a year-long investigation.
According to reports, in November 2023, the company adopted a “consent or pay” advertising model, which forced European users of Facebook and Instagram to either consent to “personal data combination” for personalised advertising or pay for ad-free versions of the platforms.
A year later, Meta introduced another free personalised advertising model, which it says processes “less personal data”; the European Commission noted this, adding that it is currently assessing whether the new model is compliant with its rules. The commission also found that Apple had broken the so-called “steering” rule in the DMA.
Under the rule, app developers distributing their apps via Apple’s App Store should be able to inform customers, free of charge, of alternative offers outside the store, steer them to those and allow them to make purchases.
Due to a number of restrictions imposed by the US tech giant, “consumers cannot fully benefit from alternative and cheaper offers,” the European Commission said in a statement.
According to media reports, a representative for Apple said the fine is “yet another example of the European Commission unfairly targeting” the company and forcing it to “give away (its) technology for free”. It added that it plans to appeal the decision.
“We have spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law, none of which our users have asked for. Despite countless meetings, the Commission continues to move the goalposts every step of the way,” he said.
The size of Apple’s and Meta’s respective fines reflects the “gravity and duration” of the companies’ breaches of the DMA, the European Commission said, adding that they must pay the fines within 60 days or risk additional financial penalties.
Violations of the landmark law can result in severe penalties, including fines of up to 10% of a company’s annual global revenue and up to 20% for repeated offences.
Meta raked in more than $164 billion in revenue last year, while Apple made $391 billion during its last financial year. That means the EU fines levied Wednesday came in well below the maximum penalty, the report added.
