The European Commission has determined that both Apple and Meta violated the Digital Markets Act (DMA), resulting in fines totalling $700m.
These fines, representing the first non-compliance decisions under the DMA, have garnered significant attention. Apple was hit with the largest fine of $500m, while Meta received a $200m penalty.
So, what exactly is the DMA? In the words of Teresa Ribera, Executive VP for Clean, Just, and Competitive Transition, the DMA is a “crucial instrument to unlock potential, choice, and growth by ensuring digital players can operate in contestable and fair markets”.
Coming into effect in 2023, the DMA marks a significant step in the EU’s efforts to regulate big tech companies and promote fair competition in the digital space. Ribera believes that these fines have sent a “clear message”.
Apple’s restrictions
As mentioned, Apple faces the larger fine of the two. The European Commission found that the Big Tech’s restrictions prevent app developers from fully benefiting from alternative distribution channels outside of the Apple App Store.
It also states that consumers also miss out on cheaper options due to Apple preventing developers from directly informing them about these alternatives.The Commission has ordered Apple to remove the technical and commercial restrictions it has placed on steering businesses away from alternative options, as well as asserting that Apple avoid repeating these actions in the future.
In response to the findings and fine, Apple claims it is being “unfairly targeted” and is being forced to give away its technology for free.
Meta’s data consent problem
The European Commission found problems with Meta’s “consent or pay” model. This model forced users to either pay to stop their data from being combined or subscribe to a paid service.
The Commission ruled that Meta’s model was not compliant with the DMA. It failed to give users a clear choice for a service that uses less personal data, while still offering similar features to the “personalised ads” service. It also did not allow users to freely consent to the combination of their personal data.
Meta’s dispute is far from over, however. In November 2024, after a back-and-forth with the Commission, Meta introduced a new version of its free personalised ads model, which it stated uses less personal data for ads. The Commission is still reviewing this new option and is in talks with Meta to assess its impact.
Henna Virkkunen, Executive VP for Tech Sovereignty, Security and Democracy, commented: “The decisions adopted today find that both Apple and Meta have taken away this free choice from their users and are required to change their behaviour. We have a duty to protect the rights of citizens and innovative businesses in Europe and I am fully committed to this objective”
Potential to boil over
Both Meta and Apple, being US-based companies, have sparked claims that the European Commission’s fines are a way for the EU to extract money from the US.
These allegations were voiced by a US-based think tank, the Information Technology and Innovation Foundation, which is partly funded by tech giants like Apple and Meta. The think tank argued that “the Commission’s actions today will not be well received by the Trump administration.”
Although Trump has not yet commented on the fines, his past remarks suggest that this could easily be the case.
Since his election, Trump has made several scathing statements about Europe. For example, earlier this year, he imposed a 10% tariff on the EU, accusing it of taking advantage of the US.
Currently, the US is engaged in a full-scale trade war with China. While these fines may seem small compared to the size of the companies involved, they could still play into the larger narrative.
