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EU Fines Apple, Meta $800 Million in First Use of Digital Competition Law

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Apple and Meta have become the first companies penalized under the European Union’s new digital competition law, in a move that adds to mounting global pressure on major US tech firms.

The European Commission announced Wednesday it had fined Apple 500 million euros ($570 million) and Meta 200 million euros ($230 million) for breaching the Digital Markets Act, a sweeping law enacted in 2022 to curb the dominance of powerful online platforms.

The Commission said Apple restricted how app developers could inform users about alternative deals outside its App Store, limiting consumer choice.

Meta was penalized for a subscription model that regulators said gave users an unfair choice: allow personal data to be used for ads or pay for a service free of advertising. Both firms have 60 days to comply or face additional penalties.

Law targets ‘gatekeepers’

The Digital Markets Act aims to prevent large tech platforms—deemed “gatekeepers”—from using their size and influence to block competition. The law applies to companies that dominate how other businesses and users access core digital services.

Apple also faces a second preliminary ruling over restrictions on rival app stores. Regulators say the company limits user access to alternative platforms on iPhones and other Apple devices. A separate investigation was closed after Apple allowed users more freedom to delete preinstalled apps.

Meta drew additional criticism for its “consent or pay” subscription option, launched in Europe for Facebook and Instagram.

The Commission said the model violated rules requiring companies to obtain user permission before merging personal data from different services. Those who decline consent must still receive an equivalent, if less personalized, experience—something regulators say Meta failed to offer.

Meta pushes Back, Apple Silent

Meta said it intends to appeal the ruling. Joel Kaplan, the company’s chief global affairs officer, accused the EU of targeting US firms while giving Chinese and European companies more flexibility.

“This isn’t just about a fine,” Kaplan said. “The Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service.” Apple has not yet responded publicly.

Wider crackdown, global impact

The EU’s move comes amid growing scrutiny of the tech sector on both sides of the Atlantic. In the US, Google has lost two major antitrust cases in the past year, involving its search engine and advertising business.

Meta is currently on trial over accusations that it used acquisitions to shut out rivals. Amazon and Apple also face federal antitrust lawsuits.

Despite tensions over trade and tariffs, the Apple and Meta rulings signal a rare alignment between Washington and Brussels on reining in Big Tech. Still, the White House has warned it may retaliate if European regulators continue to single out US firms.

In February, the administration issued a memo stating that penalties under the Digital Markets Act or the related Digital Services Act—focused on harmful online content—could prompt a response.

More cases ahead

Google could be next in line for enforcement under the Digital Markets Act, with investigations underway into its app store and search engine practices.

Another high-profile case involves X, the platform owned by Elon Musk. Regulators are expected to fine the company for breaking rules under the Digital Services Act.

As enforcement continues, the EU’s new digital laws are quickly reshaping how global tech giants do business across Europe.

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