European Commission imposes $800 million penalty on Apple and Meta

In September 2023, the European Commission designated several American tech firms, including Apple and Meta, as gatekeepers under the Digital Markets Act (DMA). This act identifies companies that operate core platform services and imposes strict regulations on their business practices. In April 2025, the commission fined Apple 500 million euros and Meta 200 million euros due to violations of the DMA, as both companies failed to comply with specific requirements outlined in the regulation. Meta's spokesperson argued that these fines effectively impose a multibillion-dollar tariff on the company and necessitate a change in their business model, which could lead to inferior services for consumers. The DMA restricts gatekeepers from engaging in activities such as tracking users outside their platforms for targeted advertising without consent and from limiting businesses in promoting offers beyond the gatekeeper's platform. Ethically, these restrictions are seen by some experts as constraints that might inhibit technology firms from maximizing profits, investing in their services, and ultimately enhancing consumer welfare. The substantial fines reflect the EU's effort to hold major American tech firms accountable for maintaining fair competition within the digital market and limit their perceived monopolistic tendencies. Analysts express concerns that the vague nature of the DMA may lead to ongoing penalties for these firms, projecting further scrutiny and potential fines ahead.