EU Commission Fines Apple €500 Million,Targets Meta Under Digital Markets Act

BRUSSELS – The European Commission⁢ on ⁤Wednesday levied a €500 million fine against Apple for anticompetitive practices related to its App Store. Meta, the parent company of Facebook ‍and Instagram, is also facing scrutiny under the Digital Markets Act (DMA) ⁢for its data usage policies.

These penalties, coinciding with ongoing trade negotiations between the European Commission and the U.S. government, mark the first enforcement actions under the DMA,⁤ the European Union’s new regulatory framework designed ⁤to curb the market dominance of major online platforms.

While the fines ⁣are substantial, thay remain below the DMA’s ⁢maximum penalty of 10% of a company’s global revenue, according to commission sources. Investigations into Apple and Meta began on June 24, 2024, and July 1, 2024, respectively.

Teresa Ribera, the commission’s vice president for the⁤ clean transition and competition policy, stated that⁢ the decisions send “a strong and clear message” that the DMA “protects European ⁣consumers and establishes equal conditions.”

Ribera added, “Apple ⁣and Meta have not complied with the DMA by implementing measures that reinforce the dependence of business users and consumers of their platforms.” she affirmed that the Commission⁣ has ‍taken “firm but balanced compliance measures against both companies, based on clear and ⁤predictable standards.”

Both Apple and Meta have 60 days to comply with ⁣the Commission’s demands or face further daily fines.

Meta’s “Consent or Pay” System Under Fire

The European Commission took issue with Meta’s previous “consent or pay” subscription model, which ⁢required Facebook and Instagram users to pay for personalized advertising. Regulators ⁣argued this system did not provide users with a genuine choice to opt out‍ of ⁢data collection, similar to a mandatory payment.

Meta introduced the “consent or pay”‍ system in November 2023. While it was replaced in November 2024 with a revised free, personalized advertising model, the Commission’s sanction applies to the period between the DMA’s enforcement in March 2024 and the model’s discontinuation.

In a separate decision, the commission persistent that Facebook Marketplace no longer qualifies as a major online platform under DMA rules, as it has fewer than 10,000 business users per month.

Apple’s App Store Restrictions

The DMA ⁤requires Apple to allow⁢ app developers to inform⁤ users about offers outside the App Store. Though, the Commission concluded ⁢that Apple imposed technical and commercial restrictions that hindered ‍competition and prevented⁢ users from accessing cheaper alternatives.

The European Commission stated that Apple failed to demonstrate ⁣that these restrictions were “objectively necessary” and mandated their removal.

Apple also faces potential future fines for allegedly creating obstacles for users who want to ‍use alternative app stores⁤ on iPhones and iPads, including a €0.50 fee imposed on developers of competing app stores.

Conversely, the Commission acknowledged that Apple now allows iPhone users ⁣to install alternative browsers to Safari and has streamlined the process for changing ‍default settings for calls, call filtering, messaging, keyboards, password managers, and translation services. Consequently, a separate examination against Apple, initiated in March of the previous year, has been closed.