The European Union has fined Apple and Meta a combined 700 million euros (nearly $800m) for breaching the bloc’s landmark Digital Markets Act (DMA), the first time sanctions have been issued under the new regulation designed to rein in the power of Big Tech firms.
Apple was hit with a 500-million-euro ($570m) penalty for restricting how app developers communicate with users about alternative sales and offers.
Meta was fined 200 million euros (nearly $230m) for its controversial “pay or consent” model, which forces users in the EU to either pay for ad-free access to Facebook and Instagram or consent to targeted advertising.
The penalties follow a yearlong investigation by the European Commission, the EU’s executive body, into whether the companies were complying with the DMA, which came into force last year.
Alongside its fine, Apple has received a cease-and-desist order requiring it to make further changes to its App Store operations by late June. If the company fails to comply, the Commission could impose daily penalties for continued breaches.
Officials are also reviewing changes Meta introduced late last year to assess whether its updated model now satisfies the regulation.
The Commission stressed that Wednesday’s fines are procedural in nature and are significantly smaller than penalties previously issued under the EU’s antitrust rules, which aim to encourage competition and break up companies it views as having a monopoly in the single market.
Last year, Apple was fined 1.8 billion euros ($2.05bn) for abusing its dominant position in music streaming, while Meta was fined 797 million euros ($909m) for promoting its classified advertisements service on its social media platforms.
But the continued enforcement of the regulations risks escalating tensions with Washington, where President Donald Trump has previously threatened further tariffs against countries that penalise United States companies.
In February, the White House warned it would consider countermeasures in response to the bloc’s digital regulations, which includes the DMA, and the separate Digital Services Act, a law targeting disinformation online.
But inside the US, pressure is also mounting on Big Tech. Meta is currently on trial over accusations it stifled competition through its acquisitions, which could force it to sell Instagram and WhatsApp.
Apple and Amazon are also facing antitrust lawsuits, while Google has suffered two major defeats in the past year over its dominance in internet search and digital advertising.
Meta said it is likely to appeal the European Commission’s ruling, describing the decision as a targeted attack on American firms.
Source: Aljazeera
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