EU fines Apple and Meta nearly 700 million euros for competition violations

In November 2023, the European Union levied significant fines on tech giants Apple and Meta for non-compliance with the Digital Markets Act (DMA). Following a year-long investigation, Meta was fined 200 million euros, while Apple faced a 500 million euro penalty. The imposition of these fines marks the EU's first enforcement actions under the new law designed to enhance competition in the digital marketplace, which aims to limit the monopolistic practices of dominant tech companies. Specifically, the European Commission concluded that during a defined period, Meta restricted users' ability to utilize versions of its platforms that processed less personal data unless they paid a fee. In response, Meta's chief global affairs officer, Joel Kaplan, claimed that the company faced an unfair disadvantage compared to Chinese and European firms, as the ruling forced them to change their business model drastically. Meta's controversial “consent or pay” model required EU users to either consent to extensive data tracking for personalized advertisements or subscribe to a paid option for an ad-free experience. This prompted criticism from regulators, who suggested that the framework limiting user choice failed to support genuine consent regarding data use. The investigation into Apple centered on its App Store policies, which were cited as hindering app developers by not allowing them to inform users about alternative and potentially cheaper purchasing options outside of the App Store. The European Commission emphasized that Apple's rules under the DMA deprived consumers of the benefits of competitive pricing. Apple’s representatives expressed their intent to appeal, arguing that the fines exemplified a pattern of unfair targeting by the EU and contended that they had implemented numerous changes to comply with the DMA at significant cost. This enforcement of the DMA reflects the EU’s ambition to establish itself as a regulatory superpower in the technology sector, aiming for a fairer digital economy. Both companies have been vocal about their dissent against the EU's actions, indicating a willingness to engage in a prolonged legal battle. The EU's decision comes amid tensions with the United States, specifically with the Trump administration, which had warned that punitive measures against U.S. companies might provoke retaliatory tariffs. The fines are relatively modest compared to previous antitrust penalties imposed on other tech giants but illustrate the rising scrutiny of American tech firms operating in Europe.