EU Tech Giants Face Landmark Fines as Digital Markets Act Claims First Casualties

In a landmark ruling that signals the European Union’s strengthening grip on big tech regulation, Apple and Meta have been hit with substantial fines totalling €700m for breaching the bloc’s Digital Markets Act (DMA).

The European Commission levied a €500m penalty against Apple for its restrictive practices concerning app distribution. The tech giant’s policy of limiting developers to its proprietary App Store has been deemed anti-competitive, effectively preventing consumers from accessing potentially more cost-effective alternatives. Apple has been ordered to remove these restrictions within 60 days or face additional penalties.

Meta, the parent company of Facebook and Instagram, received a €200m fine related to its controversial “consent or pay” model implemented in November 2023. The commission ruled that Meta’s approach to data privacy compliance was inadequate, emphasising that users should have access to personalised services without surrendering excessive personal data.

The penalties, whilst significant, represent only a fraction of the potential maximum fines under DMA legislation, which could reach 10% of annual global turnover. Both companies have announced their intention to appeal, with Apple describing the decision as “unfairly targeting” their business and Meta’s chief global affairs officer suggesting the ruling effectively imposes a “multibillion-dollar tariff” on their operations.

Teresa Ribera, the commission’s executive vice-president for competition, defended the rulings as “firm but balanced enforcement action,” emphasising the EU’s commitment to maintaining fair digital markets. The decisions have received support from consumer advocacy groups, with the European Consumer Organisation praising the move as beneficial for users.

These first penalties under the DMA mark a crucial moment in EU-US tech relations, potentially creating additional tension with the Trump administration, which has consistently opposed European digital regulation. The rulings demonstrate the EU’s determination to enforce its digital marketplace rules, regardless of potential diplomatic consequences.