The European Union on Wednesday issued its first fines under sweeping new digital competition rules, hitting Apple with a 500 million euro (US$570 million) penalty and Meta with a 200 million euro (US$228 million) fine for violating the Digital Markets Act (DMA).
The sanctions follow a year-long investigation by the European Commission into whether tech giants are complying with the DMA, which is designed to open markets to smaller players and rein in dominant platforms.
Apple said it would appeal the decision, calling the fine unfair and harmful to users. “The European Commission is 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. “This forces us to give away our technology for free.”
Meta also pushed back, saying the Commission was penalizing successful US companies. “This isn't just about a fine,” Meta said. “The Commission is imposing a multi-billion-dollar tariff on Meta while forcing us to offer an inferior service.”
Regulators ordered Apple to remove restrictions that prevent app developers from directing users to better deals outside its App Store. They also said Apple’s terms discourage developers from using alternative distribution methods by imposing what is known as the Core Technology Fee.
The Commission also faulted Meta’s current business model, introduced in November 2023, which gives Facebook and Instagram users a choice between a free ad-supported service that tracks user behavior or a paid, ad-free version. Regulators ruled this binary model breaches the DMA. Meta is now in talks with EU officials over revisions to that system.
Both companies have two months to comply with the Commission’s orders or face additional penalties.
Apple avoided further fines in a separate case involving browser choices on iPhones after making changes that allow users to more easily switch from Safari to other browsers or search engines. The EU said those adjustments comply with DMA rules and closed that investigation.
The Commission also removed Meta’s Marketplace from the DMA’s gatekeeper designation, citing a drop in user numbers below the regulatory threshold.
“We have taken firm but balanced enforcement action against both companies, based on clear and predictable rules,” the European Commission said in a statement.
The penalties are likely to heighten tensions with US officials, including former President Donald Trump, who has previously threatened tariffs in response to foreign penalties against American tech firms.
Reuters first reported on the anticipated EU decisions last month.