EU Slaps Apple and Meta with $800 Million in Antitrust Fines, Sparking Backlash from U.S. Companies

The European Union has delivered a hefty blow to Apple and Meta, fining the tech giants a combined €700 million ($797 million) for violating its landmark Digital Markets Act (DMA). This is the first major enforcement of the law, designed to curb anti-competitive behavior in the digital market.

The fines are significant, with Apple being hit with a €500 million ($570 million) penalty, while Meta faces a €200 million ($228 million) fine. These penalties come at a time when tensions are rising between the EU and the U.S., with the Trump administration accusing the EU of unfairly targeting American companies.

Meta, the owner of Facebook and Instagram, wasted no time criticizing the fine. Joel Kaplan, Meta’s Chief Global Affairs Officer, called the decision an attempt to “handicap successful American businesses.” He argued that the penalty isn’t just about money; it’s about forcing Meta to change its business model. “This isn’t just about a fine,” Kaplan said, “it’s a multibillion-dollar tariff that would require us to offer an inferior service.”

The European Commission’s investigation focused on Meta’s “consent or pay” advertising model, which was introduced in November 2023. Under this system, European users were required to either accept personalized ads powered by their data or pay for an ad-free version of the platform. The Commission found that Meta had not given users an option to use its platforms with less data collection without a fee, which violated the DMA’s rules.

In response, Meta introduced a new ad model that processes less personal data, but the Commission is still assessing whether it complies with the law.

Apple, meanwhile, was fined for violating the DMA’s “steering” rule. This provision mandates that app developers using the App Store must be allowed to inform users about alternative offers outside the store and enable them to make purchases without restrictions. The European Commission found that Apple’s policies prevented consumers from fully benefiting from cheaper alternatives.

An Apple representative expressed frustration with the fine, claiming that it was yet another example of the EU unfairly targeting the company. “We’ve spent hundreds of thousands of engineering hours to comply with this law, yet the Commission continues to move the goalposts,” the representative said. Apple plans to appeal the decision.

The size of the fines reflects the seriousness of the violations, with the European Commission emphasizing the “gravity and duration” of the breaches. Both companies have 60 days to pay, or they risk further financial penalties.

While the fines are substantial, they fall short of the DMA’s maximum penalties, which could reach up to 10% of a company’s global revenue for a first offense and up to 20% for repeat offenders. For perspective, Meta generated over $164 billion in revenue last year, and Apple made $391 billion. So, these fines are just a fraction of what both companies could face if the violations continue.

The fines are likely to fuel further accusations from former President Donald Trump and his administration that the EU is unfairly penalizing American tech giants. Last month, Trump accused the EU of being “formed to screw the United States,” following the announcement of new tariffs on European goods. In retaliation, he unveiled a 20% tariff on EU imports, although its implementation has been delayed until July.

Trump’s senior trade advisor, Peter Navarro, also slammed the EU’s actions, accusing the bloc of using “lawfare” to target America’s largest tech firms. This latest round of fines only adds fuel to the fire, raising the stakes in the ongoing battle between the EU and U.S. tech companies.

As the EU continues to enforce its strict digital regulations, expect more legal battles and potentially larger fines for tech giants caught in the crosshairs. For now, Apple and Meta will have to pay the price—both financially and politically.

Source: CNN – EU whacks Apple and Meta with $800 million in antitrust fines. Meta calls its penalty a ‘tariff’