The European Union has issued its first major fines under the Digital Markets Act (DMA), hitting tech giants Apple and Meta with penalties totaling €700 million ($797 million).
Apple received the larger fine of €500 million ($570 million) for preventing app developers from steering users to cheaper deals outside its App Store. Meta was fined €200 million ($228 million) over its “pay-or-consent” model, which forced users to either accept data tracking for personalized ads or pay for ad-free versions of Facebook and Instagram.
Both companies have strongly criticized the EU’s decision, with Apple calling it “yet another example of the European Commission unfairly targeting” American companies and Meta’s Chief Global Affairs Officer Joel Kaplan accusing the EU of “attempting to handicap successful American businesses.”
The fines could further strain EU-US relations, particularly with President Donald Trump, who has threatened tariffs against countries that penalize American companies. Trump recently claimed the EU was “formed to screw the United States” and announced plans for a 20% tariff on EU imports, though implementation has been postponed until July.
EU antitrust chief Teresa Ribera defended the penalties, stating, “All companies operating in the EU must follow our laws and respect European values.”
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The companies have 60 days to pay the fines and make required changes or face additional daily penalties. While the fines appear substantial, they represent just a fraction of the maximum possible penalties under the DMA, which can reach up to 10% of a company’s annual global revenue.
Apple avoided a separate fine for its browser options after making changes that allow users to more easily switch to alternatives, though it still faces criticism for hindering “sideloading” – downloading apps from sources outside the App Store.
The EU is also investigating Google and Elon Musk’s X for potential DMA violations.
