EU Fines Apple, Meta €700 Million for Digital Markets Act Violations

The European Union has fined Apple €500 million and Meta €200 million for violating the bloc’s Digital Markets Act, marking the first major enforcement actions under this regulation. Apple’s fine stems from restrictions that prevented app developers from directing users to alternative, often cheaper, purchasing options outside of its App Store, which the EU found to limit both developer freedom and consumer choice. Meta was penalized for its 'pay or consent' model, which required Facebook and Instagram users to either pay for ad-free access or consent to data tracking, a practice the EU deemed as effectively coercing users into giving up their personal data. Both companies have criticized the decisions, with Apple arguing the measures undermine user privacy and Meta claiming the EU is unfairly targeting successful American businesses. The fines are significantly below the maximum allowed under the DMA and both companies plan to appeal, likely leading to extended legal battles. These actions underscore ongoing transatlantic tensions over tech regulation and competition.