The EU just handed Apple a massive €500 million fine (around $570 million) for breaking the rules under its new Digital Markets Act (DMA) and Meta’s not walking away clean either, getting hit with a €200 million fine ($230 million) of its own.
No More Steering Restrictions
At the center of Apple’s fine is how it’s been restricting developers from telling users about cheaper payment options outside the App Store. The EU says this kind of “steering” should be allowed under the DMA. This basically means that devs should be able to link you to a better deal without jumping through Apple’s hoops.
The Commission concluded Apple’s setup kept users and developers boxed into Apple’s ecosystem, which isn’t cool under the new regulations. Apple’s been ordered to scrap those restrictions and make sure it doesn’t keep doing the same thing in different packaging.
Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store. Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers. The company has failed to demonstrate that these restrictions are objectively necessary and proportionate.
Not a Real Choice
Meta, on the other hand, got fined for its “consent or pay” model on Facebook and Instagram. Users in Europe either had to agree to data tracking for ads or pay a subscription. The EU says that doesn’t count as real choice, as the DMA requires. Meta did introduce a tweaked version of that model last fall, which the Commission is still reviewing.
But Weren’t the Fines Delayed?
Both Apple and Meta now have 60 days to comply or risk further penalties.
Here’s where it gets interesting: these fines were actually put on pause for a while during EU-US trade talks. The EU was reportedly holding off on enforcing some of these big DMA penalties to avoid rocking the boat while it negotiated tech regulation terms with the U.S. Now that those talks are further along, the fines have landed.
Bad Moves for Privacy and Security, Apple Says
Apple said it will appeal the decision.
Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free.
Meta also plans to push back, saying the ruling forces it to offer a worse experience and act as if it owes a “multi-billion-dollar tariff” to Europe.
The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards.
And just to put it in perspective: while €500 million and €200 million sound huge, these fines are only about 0.1% of each company’s annual revenue, a fraction of the 10% maximum the DMA allows.
But still, these are the first big punches under the DMA, and they’re setting the tone for how serious the EU is about reining in Big Tech.
Comments