EU fines Apple and Meta €700 million under new digital rules as tensions with Big Tech increase

Transatlantic tensions and resistance from digital titans have been sparked by Apple and Meta’s €700 million penalties under the EU’s Digital Markets Act.

For violating the bloc’s historic Digital Markets Act (DMA), the European Union penalized Apple and Meta a total of €700 million, or around $800 million. This was the first time sanctions were imposed under the new law intended to limit the influence of Big Tech companies.

Apple was fined €500 million ($570 million) for limiting the way app developers could inform consumers about other deals and promotions.

For its contentious “pay or consent” approach, which requires users in the EU to either pay for ad-free access to Facebook and Instagram or agree to targeted advertising, Meta was fined €200 million, or almost $230 million.

The sanctions come after a one-year probe by the European

The EU’s executive agency, the Commission, looked into whether the businesses were adhering to the DMA, which went into effect last year.

In addition to the punishment, Apple has been issued a cease-and-desist order that mandates additional modifications to its App Store operations by the end of June. The Commission may apply daily fines for persistent violations if the business doesn’t comply.

In order to determine if Meta’s revised model currently complies with the rule, officials are also examining modifications the company made towards the end of last year.

The EU ruling was criticized by Apple and Meta, who said it was unfair and detrimental to their services.

Apple claimed in a statement that it was being “unfairly targeted” by the bloc, which jeopardizes its products and users’ “privacy and security,” while requiring it to “give away our technology for free.”

“To handicap successful American businesses while allowing Chinese and European companies to operate under different standards,” according to Meta, was the description of the action.

“This goes beyond a fine,” Joel Kaplan, Chief Global Affairs Officer of Meta, stated. “The Commission is essentially imposing a multi-billion dollar tariff on Meta while requiring us to provide a subpar service by forcing us to alter our business model.”

The Commission emphasized that the fines imposed on Wednesday are procedural in nature and far less severe than those imposed in the past under the EU’s antitrust laws, which are designed to promote competition and dismantle businesses it believes to have a monopoly in the single market.

Last year, Meta was fined €797 million ($909 million) for advertising its classified ads service on its social media platforms, and Apple was fined €1.8 billion ($2.05 billion) for exploiting its dominating position in the music streaming market.

However, the laws’ ongoing implementation runs the danger of worsening relations with Washington, where President Donald Trump has promised further penalties against nations that penalize American businesses.

In reaction to the bloc’s digital rules, which include the DMA, and the independent Digital Services Act, a law that targets online disinformation, the White House issued a warning in February that it will take countermeasures.

However, Big Tech is also coming under increasing pressure within the US. Due to allegations that it suppressed competition through its acquisitions, Meta is presently on trial and may be forced to sell WhatsApp and Instagram.

While Google has lost two significant battles in the last year due to its dominance in digital advertising and internet search, Apple and Amazon are also being sued for antitrust violations.

The European Commission’s decision, which Meta described as a targeted assault on American companies, is likely to be appealed.