Month: April 2025

European Union regulators imposed hefty fines on Apple and Meta on Wednesday, intensifying efforts to enforce the bloc’s digital competition laws. The fines were issued under the EU’s Digital Markets Act (DMA), a comprehensive set of regulations aimed at increasing consumer and business choice while curbing the dominance of powerful tech “gatekeepers.” Both tech giants have signaled their intention to appeal.

The European Commission, which serves as the EU’s executive body, fined Apple €500 million (approximately $571 million) for restricting app developers from directing users to alternative, often cheaper, purchasing options outside of its App Store. Meta Platforms, the parent company of Facebook and Instagram, was fined €200 million over its practice of requiring users to either accept targeted ads or pay a fee to avoid them.

According to the Commission, both Apple and Meta must comply with the rulings within 60 days or face additional recurring fines. While substantial, these penalties are smaller than the multibillion-euro fines the EU has previously levied on major tech firms for antitrust violations. Henna Virkkunen, the Commission’s executive vice-president for tech sovereignty, said the goal of the DMA is to ensure that individuals maintain control over their personal data and that companies can communicate directly with customers. She added: “today’s decisions conclude that both Apple and Meta denied users this freedom of choice and must amend their practices.”

In Apple’s case, the Commission found the company imposed restrictive conditions that blocked app developers from directing users to purchase alternatives outside the App Store—despite DMA rules that require such transparency. Regulators have now ordered Apple to eliminate both technical and business barriers that prevent developers from promoting or linking to these external options. Apple responded by accusing the Commission of unfairly singling it out and shifting expectations despite the company’s efforts to adhere to the rules. The company said: “We’ve invested hundreds of thousands of engineering hours and implemented many changes to comply with the law—changes users haven’t even requested,” adding that the Commission “keeps moving the goalposts.”

Meta’s investigation focused on its strategy to comply with EU privacy rules by offering a paid, ad-free version of Facebook and Instagram. Users could pay a monthly fee—starting at €10—to avoid having their data used for targeted advertising. This option was introduced after the EU’s top court ruled that Meta must obtain user consent before serving personalized ads, a ruling that threatened its core advertising model. Meta’s Chief Global Affairs Officer, Joel Kaplan, criticized the ruling and argued that the EU is penalizing successful American firms while applying different standards to European and Chinese competitors. Meta introduced a third option allowing users to opt for fewer personalized ads without subscribing in November, however, the Commission is still reviewing this alternative and has asked Meta to demonstrate its effectiveness. Kaplan said: “this is more than a fine—it’s an attempt to force a fundamental change in our business model. It’s essentially a multi-billion-dollar penalty and forces us to deliver a diminished service. These restrictions also harm European businesses that depend on personalized advertising.”

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