The European Union on Wednesday fined Apple and Meta a combined €700 million-approximately $800 million-in the first significant enforcement action under its new Digital Markets Act, escalating tensions with Washington amid U.S. complaints over alleged "extortion" of American tech firms.
The European Commission imposed a €500 million ($571 million) penalty on Apple for failing to comply with "anti-steering" obligations, and a €200 million ($228.4 million) fine on Meta for requiring users to consent to data tracking or pay for ad-free services on Facebook and Instagram.
"Apple and Meta have fallen short of compliance with the DMA by implementing measures that reinforce the dependence of business users and consumers on their platforms," said Commissioner Teresa Ribera. "As a result, we have taken firm but balanced enforcement action against both companies, based on clear and predictable rules."
The Commission said Apple must allow developers to inform users of alternative purchasing options outside the App Store. Apple, which was also ordered to remove commercial and technical barriers to steering, plans to appeal.
"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," Apple said in a statement. "Despite countless meetings, the Commission continues to move the goal posts every step of the way."
Meta's case focused on its "consent or pay" model introduced in late 2023, which the Commission argued did not allow users to "freely consent" to data sharing. The Commission has issued a cease-and-desist order and gave Meta 60 days to adjust its services or face additional fines.
"This isn't just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service," said Joel Kaplan, Meta's chief global affairs officer. "The Commission is also hurting European businesses and economies."
The fines come as the Trump administration weighs retaliatory steps. Earlier this month, President Trump announced a 20% "reciprocal" tariff on EU goods, later reduced to 10% for a 90-day negotiation window. Trump has accused the EU of "taking advantage" of the U.S. through digital services taxes and penalties on tech firms.
EU spokesperson Arianna Podestà said the cases were not connected to the tariff talks. "This is about enforcement, it's not about trade negotiations," she said.
Apple and Meta now join a growing list of U.S. tech firms targeted under the DMA. While the fines are modest compared to past antitrust actions-Google was fined €2.4 billion last September-they mark a shift in enforcement power under the new EU digital rules.
Epic Games CEO Tim Sweeney celebrated the Apple ruling as "great news for app developers worldwide" on X, formerly Twitter, referencing his company's long-running fight with Apple over app distribution.
