EU fines Apple and Meta for breaking Europe’s digital rules

This marks the first penalties imposed under the legislation designed to ensure fair business practices in the tech industry. The fines are likely to further strain relations with the Trump administration, which has heavily criticized Europe's internet regulations.

‍

Apple was fined €500m for restricting app developers from distributing apps outside of its App Store, preventing consumers from discovering cheaper alternatives. The commission has given Apple 60 days to remove these restrictions or face further penalties. Apple intends to appeal the fine.

‍

Meta, the parent company of Facebook and Instagram, received a €200m fine for its "consent or pay model," introduced in late 2023 to comply with EU data privacy rules. Under this model, users had to either consent to data usage for ads or pay for an ad-free service. The Commission ruled that this approach did not comply with the DMA, as users should be able to access an equivalent service with less data usage. Meta’s revised model is still under review, and the fine is based on the non-compliance detected eight months after the DMA became enforceable in March 2024.

‍

These fines are considerably smaller than the 10% of annual global turnover tech companies can be ordered to pay, but the Commission emphasized that the fines reflect the novelty of the legislation and the brief period of non-compliance. Meta and Apple’s earnings were substantial in 2024, but the fines were determined with these factors in mind.

‍

The Commission also closed an investigation into Apple’s user-choice obligations after a “constructive dialogue” led to changes, such as allowing EU users to uninstall apps like Safari and Photos and select alternative default web browsers.

‍

Teresa Ribera, Executive Vice-President of the Commission, stated that the fines were a response to practices that increased dependency on the platforms. She emphasized that all companies operating in the EU must comply with its laws and respect European values.

‍

Apple has criticized the decision, claiming that it unfairly targets the company and harms user privacy and security. Meta, on the other hand, plans to appeal, arguing that the decision forces them to change their business model, imposing significant costs while providing a lesser service.

‍

The Computer and Communications Industry Association (CCIA), which represents Apple and Meta, expressed concerns over the transparency and predictability of the Commission’s enforcement. Meanwhile, the European Consumer Organisation supported the fines, arguing that Apple and Meta had ample time to comply but had instead delayed and manipulated the rules to their advantage.

‍

Powered by Markelitics.com

‍