European Commission

EU Fines Apple and Meta Nearly $800 Million Under New Digital Law; Meta Calls Move a ‘Tariff’

The European Union has slapped tech giants Apple and Meta with a combined €700 million ($797 million) in fines for violating its new Digital Markets Act (DMA), marking the first major enforcement action under the sweeping digital competition law.

Apple was fined €500 million ($570 million), while Meta was penalized €200 million ($228 million), the European Commission announced on Wednesday. The Commission, which serves as the EU’s executive arm, cited violations related to user choice and data privacy by both companies.

The penalties come amid growing criticism from the U.S., particularly the Trump administration, which accuses the EU of unfairly targeting American tech firms. Joel Kaplan, Meta’s global affairs chief, condemned the fine, saying the Commission is “attempting to handicap successful American businesses.”

“This isn’t just about a fine,” Kaplan said. “The Commission forcing us to change our business model effectively imposes a multibillion-dollar tariff on Meta while requiring us to offer an inferior service.”

The EU’s investigation found that Meta’s “consent or pay” model, introduced in November 2023, failed to give users a real choice. Under the system, users in Europe had to either accept targeted advertising or pay for an ad-free version of Facebook and Instagram. A revised version launched later, which Meta says uses less personal data, is still under review.

Apple, meanwhile, was penalized for restricting app developers from directing users to alternative payment options outside its App Store. Under the DMA’s “steering” provision, developers must be allowed to inform customers of cheaper alternatives without incurring charges.

“Due to Apple’s restrictions, consumers cannot fully benefit from alternative and cheaper offers,” the Commission said in its statement.

Apple called the fine “yet another example” of unfair targeting by the EU, and said it plans to appeal the ruling.

“We have spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law, none of which our users have asked for,” a company spokesperson said. “Despite countless meetings, the Commission continues to move the goalposts every step of the way.”

The Commission noted that the size of the fines reflects the “gravity and duration” of the violations. Both companies have 60 days to pay or face further penalties.

Under the DMA, fines can reach up to 10% of a company’s global annual revenue, and 20% for repeat offenses. While the current penalties fall far below those maximums—Meta earned $164 billion and Apple $391 billion last year—the move sends a strong message that Brussels is serious about holding Big Tech accountable.

The enforcement action is likely to escalate tensions between the EU and the U.S. President Donald Trump recently criticized the EU’s stance, claiming the bloc was “formed to screw the United States.” He also announced a 20% tariff on European goods, though its implementation has been delayed until July.

Earlier this month, Trump adviser Peter Navarro wrote in the Financial Times that the EU was using “lawfare” to go after America’s largest tech companies, further intensifying the transatlantic debate over digital regulation and trade.

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