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4w ago

EU Issues First Digital Markets Act Fines to Apple and Meta

Apple and Meta face €700 million in penalties and compliance orders over anti-competitive practices under the EU's landmark tech regulation.

A Meta logo is pictured at a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. REUTERS/Annegret Hilse//File Photo
This photograph shows a hand-held smartphone with the Apple company logo and the European Union logo in the background,
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Overview

  • The European Commission fined Apple €500 million and Meta €200 million for breaching the Digital Markets Act (DMA).
  • Apple was penalized for restricting app developers from directing users to cheaper purchasing options outside its App Store.
  • Meta's 'pay-or-consent' model, requiring users to either allow data collection for ads or pay for ad-free services, was deemed non-compliant with EU rules.
  • Both companies have 60 days to comply with the orders or face additional penalties, and both have announced plans to appeal the decisions.
  • The fines mark the first enforcement under the DMA and come amid rising U.S.–EU trade tensions, with President Trump criticizing the EU's tech regulations.