On Wednesday, Apple was slapped with a fine of EUR 500 million (approximately $570 million or Rs. 4,869 crore), while Meta faced a penalty of EUR 200 million (around Rs. 1,708 crore). These sanctions were issued by European Union antitrust regulators, marking the first application of new legislation designed to limit the influence of major tech firms.
The penalties could escalate tensions between European authorities and U.S. officials, particularly with President Donald Trump, who has signaled intentions to impose tariffs on countries penalizing American businesses.
These fines follow a year-long investigation by the European Commission, assessing whether both companies adhered to the provisions of the Digital Markets Act (DMA). The act aims to foster competition by opening markets traditionally dominated by larger corporations.
Enforcement of this legislation, introduced in 2023, reinforces the EU’s commitment to adhering to its regulatory framework, despite Trump’s criticisms earlier this year, where he pledged to shield U.S. firms from foreign challenges linked to the DMA.
Other major companies, such as Google and X (formerly known as Twitter), run by Elon Musk, are also under scrutiny and may face fines from EU regulators.
EU officials expressed optimism following a recent U.S. court ruling that found Google to be in violation of antitrust laws concerning its control over online advertising. This judicial decision could potentially influence U.S. authorities to pursue actions that may break up Google’s advertising operations.
Apple has announced its intention to contest the fine imposed by the EU.
In a statement, Apple characterized the fines as part of a pattern of unfair targeting by the European Commission, which it argues threatens user privacy and security, undermines product quality, and compels the company to relinquish its technological advancements without compensation.
Meta also expressed dissent regarding the EU’s ruling. Joel Kaplan, the Company’s Chief Global Affairs Officer, claimed, “The European Commission is attempting to constrain successful American businesses while permitting Chinese and European firms to operate under disparate standards.” He further criticized the Commission’s measures as imposing a substantial financial burden, likening it to a multi-billion-dollar tariff on Meta and detrimental to service quality.
Compared to previous fines levied by former EU antitrust chief Margrethe Vestager, the current penalties are relatively modest. Sources have indicated that the lighter fines reflect the brief duration of the violations, a focus on ensuring compliance over imposing penalties, and an intent to avoid any potential backlash from the U.S.
Pay-or-Consent Model
The European competition enforcement body has mandated that Apple eliminate restrictions that limit app developers from directing users to more cost-effective options outside of the App Store.
Meta’s pay-or-consent model, which came into effect in November 2023, was criticized for violating the DMA before it was amended in November 2024 to minimize the use of personal data for advertising purposes. This model offers users of Facebook and Instagram a choice: consent to tracking for a free ad-supported service or pay for an ad-free experience.
Meta is currently in discussions with EU authorities regarding the compliance of its revised model with the DMA. Both companies have a two-month timeframe to adhere to these directives or risk incurring daily fines.
In a separate investigation, Apple managed to avoid penalties related to its browser options on iPhones by implementing changes that simplify user choice regarding alternative browsers or search engines. The investigation was closed after regulators confirmed compliance with the DMA. However, Apple was still found to have violated DMA provisions by restricting users from sideloading, which allows for downloading apps from alternate sources.
EU regulators criticized Apple’s new fee structure, including what has been labeled the Core Technology Fee, saying it deters developers from using alternative app distribution channels on the iOS platform.
Additionally, the EU has rescinded Meta’s designation as a DMA gatekeeper for its Marketplace due to a decline in user numbers that fell below the required threshold.
EU antitrust chief Teresa Ribera stated, “We have undertaken enforcement actions that are both firm and balanced against these companies, grounded in transparent regulations. All businesses operating in the EU must adhere to our laws and uphold European values.”
EU lawmaker Andreas Schwab urged continued investigations into Google’s lucrative advertising technologies and Elon Musk’s X, asserting that there should be no leniency in enforcement. He warned that decisions influenced by trade policy concerns could carry dangerous implications for the integrity of competition policy within the European Union.
Earlier reports indicated that the EU was preparing to take action against both Apple and Meta as discussions progressed.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
