EU Fines Apple and Meta in Landmark Tech Regulation Enforcement

The European Union's antitrust regulators imposed significant fines on Apple and Meta, marking the first sanctions under new legislation designed to regulate large technology companies. Apple was fined €500 million, while Meta received a €200 million penalty.

These fines follow a year-long investigation by the European Commission, the EU's executive body, into whether the companies comply with the Digital Markets Act (DMA). The DMA aims to promote competition by allowing smaller rivals access to markets dominated by major tech firms. The EU's actions could potentially create tension with the United States, as former President Donald Trump has previously threatened tariffs against countries that penalize American companies.

The EU's enforcement of the new rules, introduced in 2023, is evident in these fines. Alphabet's Google and Elon Musk's X are also under scrutiny and face potential penalties from European regulators. The EU is encouraged by a recent U.S. court ruling that found Google illegally dominates online advertising technology markets.

Apple has announced its intention to challenge the EU fine, criticizing the decision as unfair and detrimental to user privacy and security. Meta has also expressed its disapproval, arguing that the EU is unfairly targeting American businesses while allowing others to operate under different standards. Meta claims the changes required by the Commission effectively impose a significant financial burden.

The fines, while substantial, are relatively modest compared to previous penalties. This is attributed to the short duration of the violations, a focus on compliance, and a desire to avoid potential retaliation. The EU competition watchdog has ordered Apple to remove restrictions that prevent app developers from directing users to cheaper deals outside the App Store. Meta's pay-or-consent model, introduced in November 2023, was found to violate the DMA.

Both companies have two months to comply with the orders or face further daily fines. Apple avoided a fine in a separate investigation regarding its browser options on iPhones after making changes to comply with the DMA. However, Apple was still charged with hindering users from side-loading apps.

The EU regulator also dropped Meta's Marketplace's designation as a DMA gatekeeper due to a decrease in user numbers. EU antitrust chief Teresa Ribera emphasized the importance of all companies operating within the EU following the laws and respecting European values.