Apple and Meta fined under Digital Markets Act

The European Union has fined Apple €500 million (approximately $570 million) and Meta €200 million (around $227 million) for breaching the bloc’s newly enacted Digital Markets Act (DMA). These are the first penalties issued under the sweeping legislation, which aims to dismantle the monopolistic strongholds of major digital platforms and promote fairer market conditions.

The fines follow extensive investigations by the European Commission into the companies’ business practices, particularly their failure to meet obligations under the DMA. Apple was penalized for maintaining restrictive App Store rules that prevented developers from freely steering users toward alternative, often cheaper, purchasing methods outside of the App Store. Despite minor adjustments in its business terms, the Commission found Apple’s measures inadequate, as the company continued to impose commissions—over 17% in some cases—on purchases made via external links, in direct violation of the DMA’s requirement that such practices be offered “free of charge.”

In a statement, the European Commission underscored that Apple’s actions blocked developers from leveraging alternative distribution channels and denied consumers competitive pricing and transparency. The Commission ordered Apple to eliminate both technical and commercial restrictions that obstruct user redirection to external payment methods, warning that failure to comply within 60 days would trigger periodic penalties.

Meta, the parent company of Facebook and Instagram, was fined for its controversial ad model which forced users to either accept personalized ads or pay for an ad-free subscription. The EU deemed this practice non-compliant with the DMA, stating it did not offer a meaningful choice for users wishing to limit the use of their personal data. While Meta has since proposed a “less-personalized ads” model, the Commission has yet to determine its acceptability.

Both companies plan to appeal the decisions. Apple argued that the EU’s ruling was unjust, claiming it undermined user privacy and security while compelling the company to give away its proprietary technology. “These decisions are not only bad for users but for the long-term sustainability of digital innovation,” Apple stated.

Meta echoed this sentiment, with Chief Global Affairs Officer Joel Kaplan accusing the Commission of unfairly targeting successful American companies while turning a blind eye to Chinese and European competitors. “This is not just about a fine,” Kaplan stated. “The Commission’s decision effectively imposes a multi-billion-dollar tariff on Meta, while degrading the quality of service we can offer.”

The fines—although lower than some past EU antitrust penalties—signal a firm stance from Brussels as it begins implementing the DMA, which came into effect in 2023. The more restrained approach to penalties reportedly reflects the Commission’s current emphasis on enforcement and compliance over punishment, as well as strategic considerations amid ongoing trade tensions with the United States.

The White House, under President Donald Trump, swiftly condemned the fines, characterizing them as “economic extortion” and threatening retaliatory tariffs. Trump has been a vocal critic of the DMA, previously describing it as a non-tariff trade barrier designed to disadvantage American firms.

The ruling may also embolden other regulatory bodies worldwide. Epic Games, a longstanding critic of Apple’s App Store policies, hailed the EU decision and urged regulators in the U.S., U.K., Japan, and Brazil to take similar action against anti-competitive practices.

As enforcement ramps up, other tech giants such as Google and Elon Musk’s X (formerly Twitter) are reportedly under EU scrutiny for potential breaches of the DMA. The stage appears set for further clashes between Silicon Valley and European regulators in what may become a defining global showdown over digital power and market fairness.