Brussels (Brussels Morning Newspaper) – On Wednesday, Apple received a fine of 500 million euros, while Meta was fined 200 million euros, as European Union antitrust regulators imposed the first penalties under significant new legislation designed to limit the influence of Big Tech.
According to Reuters, the fines imposed by the EU may escalate tensions with U.S. President Donald Trump, who has warned of imposing tariffs on nations that penalize American companies.
The sanctions stem from a year-long investigation conducted by the European Commission, the EU’s executive arm, into the companies’ adherence to the Digital Markets Act, which aims to enable smaller competitors to enter markets dominated by larger firms. Apple announced its intention to contest the EU fine.
How will Apple respond to mounting EU scrutiny?
“The announcements made today further illustrate how the European Commission is unjustly singling out Apple through a series of detrimental decisions that compromise the privacy and security of our users, adversely affect our products, and compel us to part with our technology without compensation,”
Apple stated in an email. Meta also condemned the EU’s decision.
“The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards,”
It said in an emailed statement.
“This isn’t just about a fine; the Commission forcing us to change our business model, effectively imposing a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service.”
Is this the EU’s turning point on Big Tech?
The EU competition authority stated that Apple needs to eliminate technical and commercial barriers that stop app developers from directing users to more affordable options outside the App Store. It also noted that Meta’s pay-or-consent model, implemented in November 2023, violates the DMA.
The model offers a free service funded by advertising revenues to Facebook and Instagram users who have agreed to be tracked. Alternatively, users can opt for a paid ad-free service. Meta is currently in discussions with the EU regarding a new version launched last November. The companies have a two-month timeframe to adhere to the regulations or face potential fines.
Apple dodged a penalty in a different inquiry regarding its browser options on iPhones by implementing modifications that enable users to switch to rival browsers or search engines with greater ease. Regulators confirmed that these adjustments are in line with the DMA, leading to the closure of the investigation on Wednesday.
The iPhone manufacturer faced charges for violating DMA regulations by preventing users from downloading alternative app stores and web apps through a practice referred to as sideloading.
Regulators have condemned Apple’s conditions, arguing that they discourage developers from utilizing alternative app distribution channels on iOS and compel them to accept business terms that incorporate a new charge known as Apple’s Core Technology Fee.
The EU regulator revoked Meta’s Marketplace designation as a DMA gatekeeper after its user count dipped below the threshold.
“We have taken firm but balanced enforcement action against both companies, based on clear and predictable rules,”
Stated the Commission.
