Apple and Meta fined under EU Digital Markets Act for antitrust violations

European Commission imposes major fines on Apple and Meta for breaching new digital competition rules.

An Apple logo is seen inside an Apple store in Paris, France, on September 17, 2021. Photo by Gonzalo Fuentes/Reuters

By Anna Fadiah and Hayu Andini

In a landmark decision on Wednesday, the European Commission imposed sweeping penalties on Apple and Meta, marking the first major enforcement action under the European Union’s newly enacted Digital Markets Act (DMA). Apple was fined €500 million ($570 million), while Meta received a €200 million ($228 million) penalty, together totaling €700 million in fines for breaching the DMA’s stringent requirements.

The EU Digital Markets Act fine has sent ripples through the global tech industry, with Brussels signaling a tough new era of regulatory scrutiny for dominant tech platforms. The DMA, enacted to level the playing field for smaller competitors and to rein in the market power of so-called “gatekeepers,” is now being wielded to enforce transparency, openness, and fair market access.

EU asserts its regulatory authority over Big Tech

The European Commission’s year-long investigation concluded that both Apple and Meta violated key provisions of the DMA. The watchdog's enforcement action is being watched closely by regulators, developers, and investors across the globe.

Apple was accused of obstructing app developers by maintaining restrictive policies that prevent users from being directed to alternative, potentially cheaper, payment options outside the company’s proprietary App Store ecosystem. The Commission has ordered Apple to dismantle these barriers, both technical and commercial, to promote developer freedom and user choice.

Meanwhile, Meta came under fire for its controversial “pay-or-consent” model introduced in November 2023. Under this model, Facebook and Instagram users can either allow tracking for a free, ad-supported service or pay a fee to access an ad-free version. The Commission determined that this binary system breached the DMA, which requires gatekeepers to provide genuine alternatives without penalizing privacy-focused users.

Apple and Meta push back

Apple responded with defiance, announcing its intention to appeal the decision. In a statement, the company argued that the EU Digital Markets Act fine is "yet another example" of what it perceives as unfair targeting by Brussels. “These decisions harm privacy, security, and innovation. They force us to give away our technology without compensation,” the company said.

Meta also issued a strongly worded rebuttal, claiming that the European Commission is applying double standards. “The EU is handicapping successful U.S. firms while giving local and Chinese competitors free rein,” Meta stated. It further argued that the new DMA-imposed changes essentially amount to a “multi-billion-dollar tariff” that undermines its business model.

Regulatory implications beyond fines

Beyond the financial penalties, both companies have been given a two-month deadline to comply with the EU's orders. Failure to do so could result in daily penalties of up to 5% of global turnover — a potentially catastrophic scenario for any tech firm.

Despite the hefty fine, Apple avoided punishment in a parallel case concerning default browser options on iPhones. Following recent changes that allow users to more easily switch away from Safari, regulators concluded that Apple had sufficiently addressed the DMA’s requirements in that area and closed the investigation.

However, Apple is still under fire for its handling of app distribution outside the App Store — a practice known as sideloading. The Commission found that Apple’s new conditions still place unfair burdens on developers wishing to distribute apps through alternative means. These include the introduction of a controversial Core Technology Fee, which Apple imposes even when developers avoid the App Store altogether.

Meta's DMA status changes

In a separate development, the Commission removed Meta’s Marketplace platform from the list of designated DMA gatekeepers. Officials said the decision was due to the platform’s declining number of users, which had dropped below the legal threshold set by the act.

While this change may appear minor, it reflects the EU’s commitment to data-driven enforcement under the DMA — a law that mandates strict thresholds for determining which platforms qualify as gatekeepers and are therefore subject to increased regulatory obligations.

Rising political tensions

The EU’s aggressive approach to Digital Markets Act fines could potentially reignite diplomatic friction with the United States. U.S. President Donald Trump has previously warned of retaliatory measures, including tariffs, against countries or regions that, in his view, unfairly target American companies. With Apple and Meta now facing some of the largest fines ever under EU antitrust law, the potential for geopolitical fallout looms large.

Calls for consistency and fairness

While the Commission has framed its actions as “firm but balanced,” critics argue that enforcement should be applied consistently across all major tech firms, regardless of origin. In a brief statement, the European Commission defended its actions, stating: “We have taken firm but balanced enforcement action against both companies, based on clear and predictable rules.”

As the deadline for compliance looms, both Apple and Meta are expected to continue pushing back against what they see as regulatory overreach. But for now, the EU Digital Markets Act fine stands as a clear warning that the age of lightly regulated Big Tech in Europe may be drawing to a close.

The Digital Markets Act was designed with the explicit goal of promoting competition and innovation, and Wednesday’s fines may be only the beginning of a wider regulatory crackdown. With multiple ongoing investigations into other major platforms — including Google, Amazon, and Microsoft — more penalties could follow in the coming months.

A regulatory turning point

The hefty fines against Apple and Meta mark a pivotal moment in the global regulatory landscape. The European Union has made it clear that compliance with the DMA is non-negotiable. Whether these enforcement actions will succeed in opening markets and promoting competition remains to be seen, but what’s undeniable is that Big Tech’s grip on the European digital ecosystem is now under serious threat.

As legal battles and political responses unfold, the world will be watching to see whether these historic fines usher in a new era of accountability — or spark a transatlantic tech war.