• EU fines Apple €500 million, Meta €200 million.
• Signals the EU’s tough stance on big tech.

The European Union has issued its first fines under the Digital Markets Act (DMA), ordering Apple to pay €500 million ($570 million) and Meta €200 million for failing to comply with new rules designed to promote competition in digital markets.

According to Reuters, the penalties follow a year-long investigation by the European Commission and mark a major step in the EU’s effort to curb the dominance of Big Tech platforms.

The decision is likely to escalate tensions with the United States. Former President Donald Trump – currently campaigning for re-election – has warned that European penalties targeting American firms could result in retaliatory tariffs. A White House statement referred to the EU’s actions as a “novel form of economic extortion.”

The DMA came into force in 2023 and applies to so-called “gatekeepers” – large tech companies with entrenched market positions. The legislation aims to give smaller rivals a fairer shot at competing by enforcing interoperability and greater transparency.

Why Apple was fined

Regulators found that Apple had imposed restrictions that prevented developers from directing users to external websites or alternative platforms for purchases. The steering ban meant app developers couldn’t easily promote cheaper offers outside Apple’s App Store, where purchases are subject to Apple’s commission.

In its decision, the Commission said Apple’s conditions – including a newly introduced “Core Technology Fee” – were not justified and made it unattractive for developers to use alternative distribution methods, like those offered by competitors like Epic Games. Apple said it would appeal the fine, describing the decision as part of a pattern of unfair treatment.

“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,” the company said in a statement.

Meta’s ‘consent or pay’ model under fire

Meta was fined for its “Consent or Pay” system, introduced in November 2023, which required users to either accept data tracking to use Facebook and Instagram for free, or pay a monthly subscription for an ad-free experience.

The Commission found this approach gave users limited control over how their data was used, violating DMA requirements. Meta said it is in ongoing discussions with regulators after launching an updated version of its ad model in late 2024. The revised system is said to rely on less personal data, but privacy advocates like Max Schrems say it’s still problematic. According to Schrems, the user experience pushes people toward accepting full tracking, with design choices like forced ad breaks during scrolling.

In response to the fine, Meta echoed the Trump claim that the Commission is singling out US firms unfairly. “The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards,” said Joel Kaplan, Meta’s Chief Global Affairs Officer.

Broader enforcement and trade implications

Though the fines are smaller than those seen under previous EU antitrust actions, they signal the Commission’s intent to enforce the DMA, even amid concerns about possible trade fallout. Sources close to the Commission said the relatively modest penalties reflect the short duration of the infractions, a focus on compliance, and caution over potential diplomatic consequences.

Apple avoided a fine in a separate probe into browser choice on iPhones, after making changes that allowed users to switch default search engines and browsers more easily. Regulators said those changes brought Apple in line with the DMA, and the investigation was closed. The Commission also dropped Meta’s Marketplace from its list of gatekeeper services, citing a decline in user numbers that placed it below the threshold required for DMA oversight.

However, scrutiny of other major platforms is ongoing. Alphabet’s Google and Elon Musk’s X are still under investigation and could face similar enforcement actions. EU lawmaker Andreas Schwab warned that further delays in these decisions could weaken the broader impact of European competition policy. “The EU must show consistency in enforcement to maintain credibility. Decisions driven by trade policy concerns could set a dangerous precedent,” Schwab said.

Next steps for Apple and Meta

Both companies now have 60 days to comply with the Commission’s decisions or face further daily fines. For Apple, that means removing restrictions that prevent developers from steering users to other purchasing options. For Meta, the updated ad model must meet DMA standards or risk additional penalties.

The Commission said the goal is not to punish but to ensure all digital platforms follow the same rules when operating in the EU. “All companies operating in the EU must follow our laws and respect European values,” said EU antitrust chief Teresa Ribera.