Apple and Meta hit with first fines under Europe's new Digital Markets Act
Following reported delays over political concerns, the European Commission (EC) has penalized Apple and Meta over anti-competitive activities. The fines of €500 million and €200 million respectively (around $570 million and $228 million) are the first to be issued under Europe's new Digital Markets Act (DMA), according to the EC.
The fines were issued after what the Commission called extensive consultation with the two companies after the probes were opened in March 2024. Apple violated the DMA by blocking developers from informing customers about sales and other offers outside the App Store. "Consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers," the Commission wrote, adding that it failed to demonstrate the restrictions are "objectively necessary."
The €500 million fine levied against Apple takes into account the "gravity and duration" of the non-compliant behavior. The EC also ordered Apple to remove the restrictions and refrain from imposing them in the future.
However, the Commission also closed its investigation into another Apple matter around app choices "thanks to early and proactive engagement by Apple on a compliance solution." Namely, Apple changed its browser choice screen, made it easier for users to change default settings for things like calls, messages, keyboards and password managers, and agreed to allow users to uninstall apps like Safari.
Meanwhile, the EC hit Meta for its "consent or pay" system that forced EU users to either shell out €10 ($11) monthly for an ad-free subscription or be forced to share their data. Meta introduced a new version of the free personalized ads model in November 2024 that supposedly uses less personal data to display ads (while also cutting the subscription price to €6), but the Commission is still assessing that.
The €200 million fine thus takes into account the time period between March 2024 and November 2024 when Facebook was violating DMA rules. However, Meta could face further penalties depending on how the EC evaluates the new personalized adds. On a positive note for Meta, the EC rules that Facebook Marketplace is no longer designated under the DMA, following "careful assessment of Meta's arguments and as a result of... additional enforcement and continued monitoring measures."
Last month, Meta CEO Mark Zuckerberg specifically urged President Trump to intervene on potential EU sanctions around the pay for privacy issue. The White House also released a memo in February saying it could retaliate against any European DMA sanctions against US tech companies. However, Meta has its own problems in the US that could have more dire consequences. The Justice Department accused it of squashing competition through acquisition and could force it to sell off key apps like WhatsApp and Instagram. This article originally appeared on Engadget at https://www.engadget.com/big-tech/apple-and-meta-hit-with-first-fines-under-europes-new-digital-markets-act-112545713.html?src=rss
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