LONDON — European Union regulators have made a significant move against tech giants Apple and Meta, imposing hefty fines totaling 700 million euros as part of a crackdown on digital competition. On April 23, 2025, the European Commission slapped Apple with a fine of 500 million euros (approximately $571 million) for its restrictive practices in the App Store, while Meta was fined 200 million euros (around $226 million) for its controversial advertising model on Facebook and Instagram.
The fines mark the first enforcement actions under the EU's Digital Markets Act (DMA), a comprehensive regulatory framework designed to prevent dominant tech firms from abusing their market power. The DMA aims to ensure that consumers have a variety of choices and that businesses can interact freely with their customers. Henna Virkkunen, the commission's executive vice president for tech sovereignty, emphasized, "The decisions adopted today find that both Apple and Meta have taken away this free choice from their users and are required to change their behavior."
Apple's fine stems from accusations that it has been obstructing app developers from steering users toward cheaper purchasing options outside its App Store. The commission stated that these restrictions prevent consumers from benefiting from alternative offers, saying, "Consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers."
In response to the ruling, Apple expressed its discontent, arguing that the commission is unfairly targeting the company. In a statement, Apple claimed, "We have spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law, none of which our users have asked for." The company indicated that it plans to appeal the decision, accusing the commission of "moving the goalposts" throughout the compliance process.
Meta's fine relates to its "Consent or Pay" model, which forces users to choose between consenting to personalized advertising or paying for an ad-free experience on its platforms. The commission found this model to be non-compliant with the DMA, as it does not provide users with a genuine choice regarding their personal data. Joel Kaplan, Meta's Chief Global Affairs Officer, criticized the ruling, stating, "This isn’t just about a fine; the commission forcing us to change our business model effectively imposes a multibillion-dollar tariff on Meta while requiring us to offer an inferior service."
Meta had introduced this model after the European Union's top court ruled that the company must obtain user consent before utilizing their personal data for targeted advertising. The commission is currently assessing a third option that Meta rolled out, which allows users to see fewer personalized ads without having to pay for an ad-free subscription.
The penalties come amid ongoing tensions between the EU and the United States, particularly under the Trump administration, which has criticized the EU's regulatory approach. Brian Hughes, a spokesman for the National Security Council, condemned the fines as a form of "economic extortion" aimed at American companies. He asserted, "Extraterritorial regulations that specifically target and undermine American companies, stifle innovation and enable censorship will be recognized as barriers to trade and a direct threat to free civil society."
Despite these tensions, the EU has been consistent in its enforcement of competition laws, with the fines against Apple and Meta being lower than the maximum penalties allowed under the DMA, which could have reached billions. This suggests a cautious approach by EU officials, who have also been careful to communicate that their regulations apply to all companies operating within the EU, regardless of their country of origin.
In a press briefing, commission spokesperson Thomas Regnier reiterated this stance, stating, "We don't care who owns a company. We don't care where the company is located. We are totally agnostic on that front." He emphasized that all companies, whether American, Chinese, or European, must adhere to EU regulations.
The EU's actions against Apple and Meta come as part of a broader effort to rein in the influence of major tech companies, which have amassed significant power in the digital economy. The DMA aims to prevent these companies from acting as gatekeepers that can unilaterally impose requirements on users and businesses.
In addition to the fines, both companies have been given a 60-day deadline to comply with the commission's decisions or risk facing additional penalties. The EU's rigorous stance on digital market competition has sparked concerns among U.S. tech companies, who fear that they may face similar scrutiny in the future.
As the tech landscape continues to evolve, the implications of these fines may resonate beyond Europe, potentially influencing how digital platforms operate globally. With regulators on both sides of the Atlantic increasingly focused on competition and consumer rights, the future of big tech could be shaped by ongoing regulatory developments.
In conclusion, the fines imposed on Apple and Meta highlight the EU's commitment to enforcing its digital market regulations and ensuring fair competition in the tech industry. As the situation unfolds, it remains to be seen how these companies will adapt to the new regulatory environment and what impact this will have on users and businesses alike.
