The European Union has fired a major warning shot at tech giants Apple and Meta, slapping them with fines totaling 700 million euros ($770 million) for violating the bloc’s new Digital Markets Act (DMA). It’s the first time the EU has enforced this landmark regulation, aimed at reining in the outsized influence of dominant digital platforms.
Apple received a 500 million euro penalty, while Meta was fined 200 million euros after a year-long probe into their business practices. The investigation found both companies had failed to comply with the DMA, a law introduced in 2023 to foster competition and give smaller companies a fair shot in markets long dominated by Silicon Valley heavyweights.
A Bold Statement Against Tech Dominance
The fines represent more than just monetary punishment—they signal a broader determination by European regulators to level the playing field in the tech sector. By going after Apple and Meta, the EU is making clear that even the biggest names in tech must follow its rules.
But the decision could stir fresh tensions with U.S. President Donald Trump, who has repeatedly criticized the EU’s regulatory stance. In February, he labeled the DMA an act of “foreign extortion” and warned that countries penalizing U.S. firms could face trade repercussions.
Apple and Meta Push Back Hard
Both companies quickly came out swinging.
Apple called the fine unfair and accused the Commission of undermining user privacy and product quality. “We believe these decisions harm consumers and the innovations they rely on. They also pressure us to give away our technology for free,” Apple said in a statement, confirming it plans to appeal the decision.
Meta also expressed frustration. Joel Kaplan, Meta’s head of global affairs, argued that the Commission is applying double standards. “This is not just a fine—it’s a forced change to our business model that amounts to a multi-billion-dollar tariff,” he said, adding that European and Chinese firms aren’t being held to the same bar.
What the Companies Did Wrong
Apple’s violation centered on how it limited app developers from directing users to better deals outside its App Store. The EU said such restrictions go against the DMA’s mission of giving consumers more choices and reducing developers’ dependence on Apple’s tightly controlled ecosystem.
Meta was penalized for its “pay-or-consent” model introduced in late 2023. Under this system, users had to either allow tracking for personalized ads to access services for free or pay for an ad-free experience. Regulators concluded that this structure pressured users into sharing personal data, a breach of the DMA’s user rights protections. Meta adjusted the model in late 2024 to reduce data reliance and is now working with the Commission to determine if the changes are sufficient.
The companies now have two months to bring their practices in line with EU rules—or risk facing further daily fines.
Not the Heaviest Fines, But Highly Symbolic
While 700 million euros is a hefty sum, these fines are relatively moderate compared to past penalties levied by the EU. Insiders say that’s partly due to the limited timeframe of the violations, and a regulatory strategy that favors encouraging compliance over harsh punishment. It’s also believed the EU is treading carefully to avoid escalating trade disputes with the U.S.
Nonetheless, the message from Brussels is loud and clear: the Digital Markets Act has teeth, and regulators won’t hesitate to use them.
“We’re applying the law with fairness and balance,” said EU antitrust chief Teresa Ribera. “Every company operating in Europe—no matter how big—must respect our rules and values.”
Apple’s Sideloading Practices Under Fire
Apple managed to dodge a fine in a separate probe involving browser choices on iPhones, thanks to recent changes that allow users to more easily switch away from Safari. That case was closed after regulators deemed the changes compliant with DMA standards.
However, the company wasn’t entirely in the clear. The Commission took issue with Apple’s strict approach to “sideloading,” which involves downloading apps from outside the App Store. Apple’s conditions—including a new Core Technology Fee—were criticized for discouraging developers from using alternative distribution methods. Regulators said this stifles competition, one of the DMA’s primary concerns.
Meta’s Marketplace No Longer a Target
In a separate development, the EU dropped its designation of Meta’s Marketplace as a “gatekeeper” platform under the DMA. This was due to a decline in active users, which brought the platform below the required threshold for such regulation. The move reduces regulatory oversight for that particular service.
What’s Next? Google and X Could Be Next in Line
The action against Apple and Meta is likely just the beginning. Google and Elon Musk’s social media platform X are also in the crosshairs of EU regulators. Lawmakers are pushing for a firm, consistent approach.
“There can be no room for hesitation,” said EU lawmaker Andreas Schwab. “If we allow enforcement to be swayed by trade politics, it could undermine the very foundation of Europe’s competition policy.”
Meanwhile, recent developments in the U.S. could bolster the EU’s efforts. A U.S. court recently ruled that Google illegally monopolized parts of the online ad market—a verdict that could lead to more aggressive antitrust action across the Atlantic.
