The European Union has levied its first-ever fines under the landmark Digital Markets Act (DMA), targeting two of the world's largest technology companies. The European Commission announced significant penalties against Apple and Meta, signaling a new era of enforcement aimed at curbing the power of Big Tech gatekeepers. Apple faces a substantial €500 million (approximately $570 million) fine, while Meta has been ordered to pay €200 million (around $230 million). These penalties mark a pivotal moment in the application of the DMA, a regulation designed to foster a fairer and more competitive digital landscape across the EU.The Digital Markets Act, which entered into force in November 2022 and became largely applicable in May 2023, establishes specific obligations for large online platforms designated as 'gatekeepers'. Its core objective is to prevent these dominant players from imposing unfair conditions on businesses and consumers, thereby promoting innovation and choice. The fines against Apple and Meta represent the first concrete financial penalties imposed for non-compliance since the regulation took full effect, following investigations that commenced in March 2024. This enforcement action underscores the EU's commitment to actively policing the digital market according to these new rules.Apple's €500 million penalty stems directly from the Commission's finding that the company violated DMA rules concerning its App Store practices. Specifically, regulators concluded that Apple illegally prevented app developers from 'steering' users towards cheaper purchasing options available outside the App Store ecosystem. These anti-steering provisions were deemed anti-competitive, limiting consumer choice and hindering developers' ability to offer alternative deals. This is not the first time Apple's App Store policies have drawn scrutiny; the company was previously fined €1.8 billion in March 2024 under different EU antitrust rules for similar conduct, highlighting ongoing tensions between the tech giant and European regulators.Meta, the parent company of Facebook and Instagram, received its €200 million fine due to its controversial 'pay or consent' model. Implemented in late 2023, this system required users in Europe to either consent to their personal data being combined across Meta's services for targeted advertising purposes or pay a monthly subscription fee for an ad-free experience. The Commission ruled that this model failed to provide users with a genuine, freely given choice regarding the use of their personal data, thus violating DMA requirements. Although Meta introduced a modified version of this advertising model in November 2024, which is currently under review by the Commission, the initial implementation led directly to this significant penalty.Both Apple and Meta have been given a 60-day deadline to bring their practices into full compliance with the Commission's decisions. Failure to meet this deadline could result in further 'periodic penalty payments,' potentially increasing the financial consequences substantially. EU Antitrust Commissioner Teresa Ribera emphasized that these initial fines “send a strong and clear message,” indicating the bloc's resolve to take “firm but balanced enforcement action” against non-compliant gatekeepers. The actions against Apple and Meta serve as a clear warning to other designated gatekeepers about the seriousness with which the EU intends to enforce the Digital Markets Act and reshape the digital economy.
