On Wednesday, the European Union fined Apple and Meta a total of 700 million euros for violating digital competition laws, which could provoke the anger of then-US President Donald Trump.
The penalties loom to escalate tensions further in the strained relationship between the bloc and Trump, as they negotiate an agreement aimed at sidestepping his extensive tariffs on the EU.
The European Commission fined Apple 500 million euros ($570 million) after concluding the company prevented developers from steering customers outside its App Store to access cheaper deals.
The EU also fined Meta 200 million euros over its “pay or consent” system after it violated rules on the use of personal data on Facebook and Instagram.
These penalties represent the initial ones imposed under the Digital Markets Act (DMA) since its introduction last year, compelling major technology companies globally to foster more competitive environments within the European Union.
The commission warned that they might climb higher if Meta and Apple do not conform within 60 days, imposing “recurring penalty fees” on the American corporations as a threat.
Over the past two years, the EU has strengthened its legislative toolkit with significant dual regulations: the Digital Services Act and the DMA.
However, following Trump’s comeback to the White House, there has been apprehension that the EU might hesitate to enforce these regulations.
Trump frequently lashes out at the EU over its digital laws and taxes — claiming they are “non-tariff barriers” to trade — and many tech CEOs have aligned with his administration.
He has enforced 25 percent tariffs on steel, aluminum, and automobile imports from the EU, which Brussels anticipates he might remove following a pact.
Teresa Ribera, the antitrust commissioner, stated that the fines “convey a powerful and unambiguous message,” asserting that the European Union has implemented “decisive yet measured regulatory actions.”
Apple appeal
The fines — which started following the investigations initiated in March 2024 — seem relatively moderate compared to previous punishments imposed on major American tech companies.
When Apple faced comparable violations regarding its App Store, the commission imposed an 1.8 billion euro penalty in March 2024 under distinct EU regulations.
Apple is confronted with numerous allegations. Additionally, the EU informed Apple during initial assessments that it had violated the DMA rules — putting it at risk of yet another significant penalty — due to failing to facilitate easier access for competitors to offer alternatives to its App Store.
Apple, nevertheless, strongly criticized the rulings and stated it would contest the penalty through an appeal.
The company stated that today’s announcements represent yet another instance of the European Commission unjustly focusing on Apple through a sequence of rulings detrimental to user privacy and security, harmful to product development, and compelling us to provide our technological innovations at no cost.
Meta charged the EU with “trying to undermine thriving U.S. enterprises while permitting Chinese and European firms to function under distinct regulations.”
“It’s not merely about a fine; the Commission compelling us to alter our business model essentially levies a multibillion-dollar tariff on Meta and forces us to provide a subpar service,” stated Joel Kaplan, Meta’s chief global affairs officer, who is also a notable Republican and supporter of Donald Trump.
Rarely has there been better news for Apple than when the EU concluded its inquiry into their compliance with user selection requirements following adherence to the Digital Markets Act (DMA). The company simplified the process, making it straightforward for users to set a preferred browser and uninstall pre-loaded applications like Safari.
Meta’s data use
The penalty imposed on Meta was related to its “pay for privacy” program, which has encountered strong opposition from European rights advocates since it was launched in November 2023.
This indicates that users must either choose to pay in order to prevent data collection, or consent to sharing their information with Facebook and Instagram so they can continue using these platforms at no cost.
However, the commission determined that Meta failed to offer Facebook and Instagram users an alternative personalized yet equally functional platform version. Additionally, they “did not enable users to freely opt-in for the amalgamation of their individual data.”
Meta in November last year proposed a new version, which the EU is currently assessing.
