EU fines Apple and Meta for breaching fair competition rules
The European Commission has fined Apple €500m (£429m) and Meta €200m for breaking rules on fair competition and user choice, in the first penalties issued under one of the EU's landmark internet laws.
The fines under the EU Digital Markets Act (DMA), which is intended to ensure fair business practices by tech companies, are likely to provide another flashpoint with Donald Trump's administration, which has fiercely attacked Europe's internet regulation.
The commission fined Apple €500m for restricting app developers from distributing apps outside the company's App Store. It said app developers cannot fully benefit from alternative channels, so consumers cannot discover cheaper offers.
The commission ordered the company to remove the restrictions within 60 days or risk penalty fines.
Related: EU will not rip up tech rules for trade deal with Trump, senior official says
Meta, the owner of Facebook and Instagram, was fined €200m over its 'consent or pay model' introduced in November 2023, which was an attempt to comply with EU data privacy rules.
Under this model, EU users of Facebook and Instagram had a choice between consenting to their data being used for advertising, or paying a fee for an ad-free service. The commission said this approach was not compliant with the DMA, arguing that users should be able to get a Facebook or Instagram equivalent to the personalised ad service, but based on less of their data.
EU officials said they were still assessing a new version of the free, personalised ads model Meta introduced in November 2024. The fine relates to the noncompliance found by the commission over eight months after the DMA became legally binding in March 2024.
The fines fall far short of the 10% of annual global turnover tech companies can be ordered to pay. Meta earned $165bn (£124bn) in 2024, while Apple sold goods and services worth $391bn in its last financial year.
EU officials described the 10% figure as a ceiling, rather than a parameter to set fines. In determining the fines, officials took into account the newness of the legislation and the relatively short duration of the offences.
The commission also announced on Wednesday that it was closing an investigation into Apple's user-choice obligations under the DMA after 'a constructive dialogue' with the company. Apple has made it possible for EU users to uninstall its Safari web browser, photo app and other programs, and make it easier to choose another default web browser, the commission said.
Teresa Ribera, the commission executive vice-president in charge of competition, said Apple and Meta had fallen short of compliance with the DMA 'by implementing measures that reinforce the dependence of business users and consumers on their platforms'. The commission had 'taken firm but balanced enforcement action against both companies, based on clear and predictable rules', she said. 'All companies operating in the EU must follow our laws and respect European values.'
EU officials have rejected claims from the Trump administration that tech regulation is being used as a weapon against successful US companies.
Meta is expected to appeal to the European court of justice. In a statement, Meta's chief global affairs officer, Joel Kaplan, said the commission was 'attempting to handicap successful American business' while allowing Chinese and European firms to operate under different standards.
'This isn't just about a fine,' he said. '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.'
Apple has been contacted for comment.
The Computer and Communications Industry Association, whose members include Apple and Meta, said the commission's enforcement of the DMA was 'opaque and discretionary, lacking both predictability and proportionality'.
However, the European Consumer Organisation praised the decisions as good for consumers.
'Apple and Meta have had ample time to comply with the Digital Markets Act but instead have delayed compliance and tried to twist the rules to their advantage,' said the BEUC director general, Agustín Reyna.
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