The European Union has imposed its first major fines under the recently enacted Digital Markets Act (DMA), penalising Apple and Meta a combined €700 million for breaching new Big Tech regulations. Apple received a €500 million fine, while Meta was fined €200 million, marking a significant step in the EU’s push to rein in the dominance of large technology firms.
Announced on Wednesday, the penalties are being closely watched amid mounting trade tensions, with reports suggesting that former U.S. President Donald Trump may be considering retaliatory tariffs on countries that penalise American tech companies. Such a move could spark a broader transatlantic confrontation over digital regulation and trade.
Both Apple and Meta responded forcefully to the fines. In a sharply worded statement, Apple criticised the European Commission’s ruling as unjust.
“These decisions are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free,” the company stated.
Apple accused the EU of singling out successful U.S. tech firms while allowing European and Chinese companies to operate under less stringent regulatory conditions. Meta, which owns Facebook and Instagram, also objected to the Commission’s decision, stating that it would be forced to revise its business model.
In late 2023, Meta introduced a “pay-or-consent” option, offering users the choice between a free, ad-supported experience (involving tracking) or a paid, ad-free alternative. The EU has ruled that this model violates the DMA, and Meta has been given two months to bring its services into compliance or face additional daily fines.
Regarding Apple, EU regulators ordered the company to eliminate technical and commercial restrictions that prevent app developers from directing users to more affordable options outside the App Store. Though Apple avoided a separate fine over its browser policies — after implementing changes that now allow iPhone users to choose alternative browsers and search engines more easily — it still faces scrutiny over its limitations on sideloading.
The Commission criticised Apple’s implementation of a new “Core Technology Fee,” describing it as a deterrent to developers considering alternative app distribution outside the App Store ecosystem. This practice, regulators argue, undermines the DMA’s intent to open up mobile platforms to broader competition.
In Meta’s case, the EU reaffirmed that its “pay-or-consent” approach does not sufficiently respect user choice under the new rules. While discussions continue over potential revisions to the model, the company must act swiftly to comply or risk further penalties. Meanwhile, Meta’s Marketplace has been delisted as a DMA gatekeeper after falling below the threshold for user activity.
The European Commission has signalled that these actions are just the beginning. Ongoing investigations into Google’s advertising business and Elon Musk’s platform X (formerly Twitter) suggest that additional enforcement measures may be forthcoming.
The EU’s competition chief, Teresa Ribera, said the Commission had taken a firm yet balanced stance. “We have taken firm but balanced enforcement action… All companies operating in the EU must follow our laws and respect European values,” she said.
Some European lawmakers, such as Andreas Schwab, are urging the Commission to remain resolute in the face of potential political and trade pressures. “There can be no leeway in enforcement… Linking decisions to trade policy is dangerous for the whole EU construction,” Schwab warned.
The Digital Markets Act, which came into effect in 2023, is a flagship regulation aimed at limiting the power of dominant tech companies and fostering a more competitive digital market. While Wednesday’s fines are significant, they remain modest compared to past antitrust penalties. Analysts suggest the relatively smaller amounts reflect the Commission’s focus on ensuring compliance in the early stages of the DMA, rather than immediately seeking punitive measures.