Apple and Meta face hefty penalties for breaches of EU antitrust rules, challenging their market dominance and raising questions about the future direction of tech regulation.
Key Takeaways
- Apple and Meta fined by the EU for violating the Digital Markets Act.
- Fines total €700 million, with Apple paying €500 million and Meta €200 million.
- Apple’s fine relates to “anti-steering” obligations; Meta’s due to ads policy.
- Both companies plan to contest, citing privacy and uneven regulatory standards.
- The enforcement marks significant regulation against big tech since 2022.
Fines and Offenses
The European Union has levied significant fines on Apple and Meta, amounting to €700 million, as part of its Digital Markets Act enforcement. The penalties fall under rules designed to rein in the dominance of major tech companies. Apple’s €500 million fine targets its restrictive practices that hinder app developers from offering less expensive options outside its App Store. In contrast, Meta’s €200 million penalty addresses its advertising-driven model on platforms like Facebook and Instagram.
The Digital Markets Act, adopted in 2022, takes direct aim at the practices of technology firms from Silicon Valley, supporting competitions from smaller entities. The fine against Apple specifically deals with the company’s resistance to “anti-steering” obligations which require them to allow app developers to inform users of alternative offers outside the App Store. Apple asserts that this enforcement endangers privacy and security.
Apple and Meta Are First to Be Hit by E.U. Digital Competition Law
The European Commission said the Silicon Valley companies violated the Digital Markets Act, a law meant to crimp the power of the largest tech firms. https://t.co/sYlsqt4dQt via @NYTimes
— Karol Cummins – New Acct (@karolcummins) April 23, 2025
Meta’s Arguments
Meta’s transgression involves compelling its users to agree to data sharing or to switch to a subscription tier to avoid ads on its platforms. Chief Global Affairs Officer Joel Kaplan criticized the EU for differential treatment, suggesting unfair regulatory burdens on American companies compared to their European and Chinese counterparts. Additionally, Meta received a mandate to change its advertising approach within 60 days to avoid further sanctions.
“This isn’t just about a fine; the Commission is forcing us to change our business model, effectively imposing a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service,” argued one Meta spokesperson.
The EU acknowledged improvements in Meta’s compliance efforts due to a less personalized ad mode, yet Meta’s financial and operational challenges continue. Both entities are exploring legal avenues to contest the penalties, suggesting an ongoing battle in tech regulations that could test the boundaries of EU-U.S. relationships.
U.S. Reactions and Trade Considerations
The European Commission’s decision could spark increased tensions with the United States. American tech giants like Apple, Meta, Google, and Amazon are already grappling with antitrust challenges domestically. A White House memo has already signaled potential retaliations if perceived unfair targeting under the EU’s Digital Markets Act continues.
Apple was displeased with the decision, stating, “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.”
President Trump’s tariff policies against the EU could potentially re-escalate, potentially creating added complexities for ongoing trade talks. European officials, however, maintain that these rulings are independent of trade agreements with the U.S., focusing purely on market competitiveness.
Sources:
- European Union hits Apple and Meta with nearly $800 million in fines amid U.S. trade tensions
- Apple and Meta hit with massive fines for violating EU law
