In a bold move marking the first enforcement of its Digital Markets Act (DMA), the European Union has fined tech giants Apple and Meta a combined €700 million (around $797 million USD), escalating tensions over digital regulation and transatlantic trade relations.
Apple and Meta Face Major Penalties
The European Commission, the executive branch of the EU, announced on Wednesday that Apple has been fined €500 million ($570 million), while Meta, the parent company of Facebook and Instagram, received a €200 million ($228 million) penalty. Both companies stand accused of failing to comply with the DMA, a sweeping law aimed at curbing the dominance of “gatekeeper” platforms in the digital economy.
Meta’s Ad Model Sparks Controversy
The case against Meta centers on its “consent or pay” advertising model launched in Europe in late 2023. This approach required users to either allow the company to combine personal data for targeted ads or pay for a version of its platforms without ads. Meta later introduced a variant it claimed uses less personal data, but EU regulators are still evaluating whether it aligns with DMA requirements.
Meta’s global affairs chief, Joel Kaplan, lashed out at the fine, calling it a thinly veiled economic penalty disguised as regulation. He argued that the forced changes to Meta’s business model amount to a “multibillion-dollar tariff” on the company and degrade the user experience.
Apple Accused of Blocking Fair Competition
Apple’s fine stems from its restrictions on app developers using the App Store. Under the DMA, developers must be able to inform users of cheaper or alternative purchasing options outside of Apple’s ecosystem. The Commission found Apple’s rules made it too difficult for consumers to discover or take advantage of such options, effectively stifling competition.
Apple defended its position, claiming it had already taken extensive steps to comply with the law. A company spokesperson criticized the EU’s ruling as punitive and unfair, arguing that Apple is being forced to give away its proprietary technology for free. The spokesperson also confirmed that the company plans to appeal the decision.
Broader Implications and Political Backlash
The EU’s fines—though well below the maximum allowable under the DMA—have added fuel to ongoing criticism from U.S. officials who claim European regulators are disproportionately targeting American firms. Meta earned over $164 billion in revenue last year, while Apple brought in $391 billion, making the fines a relatively modest financial hit.
Still, the regulatory push has drawn sharp criticism from former President Donald Trump, who recently accused the EU of being designed to undermine U.S. interests. He announced a new 20% tariff on EU imports, though its implementation has been delayed until July.
Peter Navarro, a close trade adviser to Trump, echoed those concerns, accusing the EU of using “lawfare” to single out major U.S. tech companies in a Financial Times op-ed earlier this month.
What Comes Next
Apple and Meta have 60 days to pay the fines or risk further financial penalties. If the companies are found to be repeat offenders, fines could soar to as much as 20% of global annual revenue.
This high-profile enforcement of the DMA signals that the EU is serious about policing the power of Big Tech. But it also raises questions about the growing rift between European regulators and American tech companies—a divide that could deepen as more cases emerge.
