In the first enforcement of the European Commission’s Digital Markets Act (DMA), Apple and Meta were fined a combined €700 million for violating the EU’s new digital regulations.
Apple was fined €500 million ($570 million), while Meta was fined €200 million ($228 million).
Although significant, these penalties are relatively modest compared to previous EU enforcements, following threats of potential retaliation from U.S. President Donald Trump.
On Wednesday, April 23, Meta was fined $228 million for its “pay or consent” advertising model, while Apple was fined $500 million for breaching the rules in relation to its app store, Reuters reported.
The EU fines are modest compared to previous penalties. The EU fined Apple €1.8 billion in March after alleging it abused its dominant position in music streaming applications.
However, in February, Trump threatened to place retaliatory tariffs on countries that unfairly penalized U.S. companies.
Talking to POLITICO, Ursula von der Leyen, European Commission President, said the bloc’s rules will be enforced regardless of outside threats.
“The rules voted by our co-legislators must be enforced,” Leyen told the publication.
“That’s why we’ve opened cases against TikTok, X, Apple, Meta just to name a few,” she added. “We apply the rules fairly, proportionally, and without bias. We don’t care where a company’s from and who’s running it. We care about protecting people.”
According to the Commission’s 2024 announcement of its non-compliance investigations against Apple, Meta, and Alphabet, the Commission could impose fines of up to 10% of the company’s worldwide turnover.
“Such fines can go up to 20% in case of repeated infringement,” the document states.
Reuters previously reported that Apple and Meta were expected to receive “modest” fines for their alleged breaches of the DMA, despite being prime targets of EU regulators.
Apple and Meta have been targets of the EU’s DMA for the past few years.
The DMA aims to promote fair competition in the digital sector by preventing large technology companies from engaging in anti-competitive practices.
The act explicitly targets major online platforms, known as “gatekeepers,” which significantly impact the digital market.
EU regulators have repeatedly raised concerns over Apple’s restriction on developers’ promotion of alternative app stores and payment methods.
Meta, on the other hand, has been scrutinized for how it handles data collection and advertising practices.
In 2024, the company introduced a “pay or consent” model for users in the EU. Under this model, users must either agree to have their data used for personalized ads or pay for an ad-free version of Facebook and Instagram.
The Commission said the binary choice “forces users to consent to the combination of their personal data and fails to provide them a less personalized but equivalent version of Meta’s social networks.”
In February, Trump ordered his administration to scrutinize global rules dictating how U.S. companies interact with the EU.
Two days later, Jim Jordan, chairman of the U.S. House Judiciary Committee, wrote a letter to EU competition boss Teresa Ribera accusing the DMA of unfairly targeting U.S. companies.
“These severe fines appear to have two goals: to compel business to follow European standards worldwide, and as a European tax on American companies,” the letter read.
The EU fired back in defense of the DMA in a letter to the U.S. on March 5, claiming the allegations of targeting U.S. companies were unfounded.
“Given the importance of our shared values in promoting fair competition and innovation, it is essential that we align our efforts to address the challenges posed by dominant digital platforms,” the letter read, signed by nine members of the EU parliament.