EU fines Apple, Meta nearly $800m for breaching digital competition rules

The European Union (EU) has fined Apple and Meta nearly $800 million for allegedly breaching its digital competition regulations.

In a statement on Wednesday, the European Commission said it was penalising Apple to the tune of €500 million ($571 million) and Meta with €200 million ($228 million) for violating the Digital Markets Act (DMA).

According to EU officials, Apple failed to adhere to “anti-steering” provisions, a requirement under the DMA that allows app developers to inform users about alternative offers outside Apple’s App Store without restriction.

The commission directed the tech giant to eliminate all forms of technical and commercial barriers preventing steering and to desist from repeating such practices.

Reacting to the development, Apple said it would appeal the decision and described the commission’s action as “unfair”.

“Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free,” the company said.

In Meta’s case, the commission ruled that the company’s “consent or pay” model for ad-free services on Facebook and Instagram, which was introduced in November 2023, violated EU rules on user data and digital advertising.

Joel Kaplan, Meta’s global affairs chief, criticised the EU’s ruling, saying that it is punishing American firms while giving other regions a pass.

“This isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta,” he said.

The EU, however, noted that its fine for Meta considered steps taken by the tech firm to comply with regulations through a revised version of its free personalised ads service that utilises less personal data for advertising.

Also, sources familiar with the matter said Meta has been given 60 days to modify its ads platform or face additional penalties.

The antitrust ruling comes on the heels of rising trade tensions between the United States and the EU.

Recently, US President Donald Trump introduced a 20 percent reciprocal tariff on EU goods, before later reducing the rate to 10 percent pending further trade talks.

Trump had also previously labelled EU measures against US tech firms including digital taxes and antitrust fines as “overseas extortion”.