EU Fines Apple $570 Million And Meta $228 Million For Digital Market Rules Violations

 

Apple was fined for the stringent restrictions in places on iPhone App developers who use "alternative distribution channels” other that the App Store.

Apple was fined $570 million (€500 million) and Meta was hit with a $228 million (€200 million) penalty by the European Union on Wednesday for separate violations of the bloc’s digital market rules, in a move that could raise tensions between the EU and the U.S. amid efforts by both sides to make tariff and trade deals.

Key Facts

The European Commission, the EU’s executive body, announced the fines after a year-long investigation into the two companies’ compliance with the Digital Markets Act—which aims to make it easier for smaller companies to compete with global tech giants.

The commission said Apple had failed to comply with the rules as it imposed several restrictions that limit iPhone and iPad app developers from fully benefiting “from the advantages of alternative distribution channels” other than the company’s official App Store.

The commission also noted that Apple’s action prevented consumers from enjoying “alternative and cheaper offers” as the iPhone maker prevented app developers from directly informing them about such offers.

Apple has been ordered to remove these “technical and commercial restrictions” and refrain from non-compliance with the rules in the future.

The regulator also ruled that Meta’s “binary ‘Consent or Pay' advertising model,” which offers users the choice of using Facebook and Instagram for free with personalized ads or paying for an ad-free service, also ran afoul of the rules.

The commission said Meta’s model did not comply with the DMA as the company did not allow users to choose a free version of the service that uses “less of their personal data.”

What Is The Eu Still Investigating?

The Commission said it is examining a compromised offering proposed by Meta in November 2024, which offers a “free personalised ads” version of Facebook and Instagram that “allegedly uses less personal data to display advertisements.”

What Has Apple Said?

Apple told various outlets it plans to appeal the decision, calling it “yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products and force us to give away our technology for free.”

What Has Meta Said?

Meta’s chief global affairs officer told the Wall Street Journal that the company would likely appeal the ruling and equated the EU’s rules to a multibillion-dollar tariff. “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,” Kaplan said.

Key Background

The fines against Meta and Apple come amid a 90-day pause in President Donald Trump’s reciprocal tariffs against the EU and other countries. The EU has also paused its planned countermeasures against U.S. imports as both sides have expressed interest in negotiations. Despite this, EU officials have signaled that if a trade war between the two sides escalates, the bloc will target US services exports, including Big Tech companies. Since Trump’s election, several top tech executives have reached out to him to complain about the EU’s regulations targeting their operations. Since taking office, Trump and officials from his administration have warned the bloc against targeting U.S. companies with what it calls “unfair fines and “onerous international rules.”