EU Fines Apple and Meta €700 Million for Digital Competition Violations
The European Union (EU) has levied a hefty fine of €700 million on tech giants Apple and Meta for violating digital competition rules. The EU alleges that both companies breached the Digital Markets Act (DMA), a recently enacted regulation.
EU spokesperson Thomas Regnier issued a warning to Apple and Meta, giving them 60 days to comply with the regulations or face even steeper fines.
Regnier stated, “The commission has imposed fines of 500 million euros on Apple and 200 million euros on Meta for violating the Digital Market Act. Apple’s anti-steering obligations under the DMA restrict app developers from directing customers to cheaper alternatives outside the Apple App Store. On the other hand, Meta’s binary pay or consent advertising model violates the DMA’s requirement to offer consumers a choice of services using less personal data.”
Apple may be required to remove technical and commercial barriers that prevent app developers from redirecting users to lower-priced options outside the App Store.
Meta’s Response
After extensive discussions with the Commission, Meta introduced a revised version of its free personalized ad model in November, offering an alternative that uses minimal personal data for ad targeting. The Commission is currently evaluating this new option and maintaining communication with Meta to assess its impact.
Regnier emphasized that the fines imposed on Apple and Meta mark the first penalties under the DMA.
Meta and Apple Push Back
Both tech companies have responded vehemently to the EU’s actions. Meta accused the EU of attempting to handicap successful American businesses, while Apple claimed it was unfairly targeted and compelled to provide its technology for free.
The EU initiated investigations into both companies last year under the new law designed to foster fairness in the tech industry.
This development underscores the EU’s commitment to enforcing digital competition rules and ensuring a level playing field for all players in the tech sector.
