The European Commission imposed significant fines on Apple and Meta for violating the Digital Markets Act (DMA) Wednesday, April 22, marking the first penalties issued under the bloc’s new digital competition rules.
Apple received a €500 million (~$571 million) fine for preventing app developers from informing users about alternative purchasing options outside its App Store. Meta faces a €200 million (~$226 million) penalty for its “consent or pay” model that forced Facebook and Instagram users to either accept personalized ads or pay for ad-free subscriptions.
“The Digital Markets Act is a crucial instrument to unlock potential, choice, and growth by ensuring digital players can operate in contestable and fair markets,” Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, said in a press release.
Both companies must comply with the Commission’s decisions within 60 days or risk additional periodic penalty payments.
Apple’s App Store Restrictions
The Commission found Apple failed to comply with DMA provisions requiring gatekeepers to allow developers to freely steer consumers to alternative offers. According to regulators, Apple imposed restrictions that prevented app developers from fully benefiting from distribution channels outside the App Store.
“Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store,” the Commission stated. “Similarly, consumers cannot fully benefit from alternative and cheaper offers.”
The Commission has ordered Apple to remove both technical and commercial restrictions on steering and to refrain from similar conduct in the future.
Meta’s ‘Consent or Pay’ Model
Meta’s violation centered on its approach to user data and advertising. The DMA requires gatekeepers to seek users’ consent for combining personal data between services, with those who decline having access to a less personalized but equivalent alternative.
The Commission determined Meta’s binary model—offering only the choice between accepting data combination for personalized advertising or paying for an ad-free service—didn’t comply with these requirements.
In November 2024, Meta introduced a new version that offers an option that allegedly uses less personal data for advertisements. The Commission is currently assessing this alternative and continues dialogue with Meta regarding evidence of its practical impact.
Company Responses
Both companies have indicated they will appeal the decisions.
Apple stated it “spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law” while accusing the Commission of “unfairly targeting” the company and continually “moving the goalposts.”
Meta’s Chief Global Affairs Officer, Joel Kaplan, claimed the “Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards.”
Broader Implications
The fines come amid escalating trans-Atlantic trade tensions, with U.S. President Donald Trump criticizing EU regulations that affect American companies. His administration slammed the EU’s ruling.
“Extraterritorial regulations that specifically target and undermine American companies, stifle innovation, and enable censorship will be recognized as barriers to trade and a direct threat to free civil society,” Brian Hughes, a spokesman for the National Security Council, said in a statement.
A February White House memo stated that officials would consider retaliation if the EU targeted American tech companies under the Digital Markets Act or the Digital Services Act.
However, Commission spokesperson Thomas Regnier emphasized regulatory impartiality: “We don’t care who owns a company. We don’t care where the company is located.”
An Associated Press report notes that the penalties were smaller than previous multibillion-euro antitrust fines issued by the Commission, potentially signaling a more measured approach as the bloc navigates international relations while enforcing its new digital market regulations.
“Enabling free business and consumer choice is at the core of the rules laid down in the Digital Markets Act,” stated Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy. “This includes ensuring that citizens have full control over when and how their data is used online.”
The European Commission imposed significant fines on Apple and Meta for violating the Digital Markets Act (DMA) Wednesday, April 22, marking the first penalties issued under the bloc’s new digital competition rules.
Apple received a €500 million (~$571 million) fine for preventing app developers from informing users about alternative purchasing options outside its App Store. Meta faces a €200 million (~$226 million) penalty for its “consent or pay” model that forced Facebook and Instagram users to either accept personalized ads or pay for ad-free subscriptions.
“The Digital Markets Act is a crucial instrument to unlock potential, choice, and growth by ensuring digital players can operate in contestable and fair markets,” Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, said in a press release.
Both companies must comply with the Commission’s decisions within 60 days or risk additional periodic penalty payments.
Apple’s App Store Restrictions
The Commission found Apple failed to comply with DMA provisions requiring gatekeepers to allow developers to freely steer consumers to alternative offers. According to regulators, Apple imposed restrictions that prevented app developers from fully benefiting from distribution channels outside the App Store.
“Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store,” the Commission stated. “Similarly, consumers cannot fully benefit from alternative and cheaper offers.”
The Commission has ordered Apple to remove both technical and commercial restrictions on steering and to refrain from similar conduct in the future.
Meta’s ‘Consent or Pay’ Model
Meta’s violation centered on its approach to user data and advertising. The DMA requires gatekeepers to seek users’ consent for combining personal data between services, with those who decline having access to a less personalized but equivalent alternative.
The Commission determined Meta’s binary model—offering only the choice between accepting data combination for personalized advertising or paying for an ad-free service—didn’t comply with these requirements.
In November 2024, Meta introduced a new version that offers an option that allegedly uses less personal data for advertisements. The Commission is currently assessing this alternative and continues dialogue with Meta regarding evidence of its practical impact.
Company Responses
Both companies have indicated they will appeal the decisions.
Apple stated it “spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law” while accusing the Commission of “unfairly targeting” the company and continually “moving the goalposts.”
Meta’s Chief Global Affairs Officer, Joel Kaplan, claimed the “Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards.”
Broader Implications
The fines come amid escalating trans-Atlantic trade tensions, with U.S. President Donald Trump criticizing EU regulations that affect American companies. His administration slammed the EU’s ruling.
“Extraterritorial regulations that specifically target and undermine American companies, stifle innovation, and enable censorship will be recognized as barriers to trade and a direct threat to free civil society,” Brian Hughes, a spokesman for the National Security Council, said in a statement.
A February White House memo stated that officials would consider retaliation if the EU targeted American tech companies under the Digital Markets Act or the Digital Services Act.
However, Commission spokesperson Thomas Regnier emphasized regulatory impartiality: “We don’t care who owns a company. We don’t care where the company is located.”
An Associated Press report notes that the penalties were smaller than previous multibillion-euro antitrust fines issued by the Commission, potentially signaling a more measured approach as the bloc navigates international relations while enforcing its new digital market regulations.
“Enabling free business and consumer choice is at the core of the rules laid down in the Digital Markets Act,” stated Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy. “This includes ensuring that citizens have full control over when and how their data is used online.”