Apple and Meta have become the first tech giants to face penalties under the European Unionโs landmark Digital Markets Act (DMA), signaling a major shift in how Brussels enforces digital competition rules.
On Wednesday, the European Commission revealed that Apple had been fined โฌ500 million for violating DMA provisions related to app store operations. Meta received a โฌ200 million fine for its โpay or consentโ advertising model, which asks users to either accept personalized ads or pay for ad-free access to Instagram and Facebook.
Along with the financial penalty, Apple was given a cease-and-desist order and a deadline of late June to implement further changes. If it does not comply, the company risks additional daily fines. Regulators are still evaluating Metaโs response to concerns, particularly changes made toward the end of last year.
Compared to prior antitrust penalties, the DMA fines are smaller. In 2023, Apple was ordered to pay โฌ1.8 billion for limiting competition in music streaming, while Meta faced a โฌ797 million fine for giving preference to its own classifieds service on its platforms.
According to a senior EU official, these initial fines reflect the early stage of DMA enforcement and the fact that Meta stopped the contested practice shortly after it was raised.
In total, five decisions related to the DMA were issued on Wednesday. Although both companies faced sanctions, they also received partial relief. The Commission closed a separate investigation into Appleโs handling of browsers and default apps, citing improvements that boosted competition for companies such as Mozilla. Meta benefited from the removal of Facebook Marketplace from the list of services covered under the DMA, narrowing the regulationโs reach over its operations.
Meanwhile, Apple faces new scrutiny over how it manages access to alternative app marketplaces. The Commission has issued preliminary findings in this area, which could eventually lead to additional fines as the probe continues.
Commenting on the enforcement action, EU Competition Commissioner Teresa Ribera stated, โApple and Meta have fallen short of compliance with the DMA by implementing measures that reinforce the dependence of business users and consumers on their platforms. As a result, we have taken firm but balanced enforcement action against both companies, based on clear and predictable rules.โ
Apple said it plans to appeal the decision. In a statement, a spokesperson called the move โyet another example of the European Commission unfairly targeting Apple.โ She added, โDespite countless meetings, the Commission continues to move the goalposts every step of the way.โ
Metaโs Chief Global Affairs Officer Joel Kaplan strongly objected to the decision, describing it as a โmulti-billion-dollar tariffโ that would damage European economies. โThe European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards,โ he said.