EU Fines Apple and Meta €700M Under New Tech Rules – Coincu

Apple and Meta Platforms Inc. face a combined €700 million fine from the European Union for breaching the bloc’s Digital Markets Act, a decision reflecting heightened scrutiny over tech industry practices.

The fines underscore the EU’s commitment to enforcing the DMA, recently introduced in 2024, to regulate “gatekeepers” in digital markets and provide consumers with more choices.

The European Union fined Apple €500 million and Meta €200 million, alleging “anti-steering” violations and improper handling of subscription services. These fines represent the first enforcement actions under the DMA and are less severe than prior antitrust cases.

Both tech giants have 60 days to make required changes or face additional financial penalties. Apple is accused of restricting developers from guiding users outside its App Store, while Meta’s ad-free service violated consent laws.

Market reactions were swift, with industry leaders responding to the penalties. Tim Cook expressed concern that the EU forces Apple to relinquish valuable technology, affecting user experience, quoting:

“Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free.”

Regulatory Pressure Rises on Tech Giants post-2024 DMA

Did you know?
The €700 million fine marks a significant milestone, being the first large-scale financial penalties under the DMA introduced in 2024, shifting how EU regulates tech giants.

The introduction of the DMA in 2024 aimed to curb the dominance of major tech firms. Although the fines are milder than past EU actions, they signal increased regulatory pressure on digital platforms.

Insights reveal increased regulatory attention may prompt tech companies to preemptively adjust business models, reflecting an anticipation of financial and competitive shifts. This approach may offer consumers greater choices and potentially enhance user rights within digital ecosystems.