In a significant enforcement move under the Digital Markets Act (DMA), the European Union has imposed substantial fines on two of the world’s largest technology companies—Apple and Meta Platforms Inc. The penalties mark the first major sanctions under the bloc’s new regulatory framework designed to rein in the dominance of Big Tech and foster fairer digital competition across the European market.
Apple has been fined €527 million (approximately $570 million USD), while Meta faces a penalty of €210 million (approximately $228 million USD), according to a report by Reuters. These actions follow over a year of investigation by the EU’s competition watchdog into potential non-compliance with DMA provisions.
Apple’s fine stems from its restrictions on sideloading, which prevents users from installing apps from third-party sources outside of the App Store. The European Commission determined that Apple’s practices not only stifle competition but also limit consumer choice. Regulators have ordered the tech giant to remove barriers that prevent developers from directing users to alternative, often cheaper, purchasing options outside of Apple’s proprietary ecosystem.
Apple responded in a statement, criticizing the decision as “unfair targeting” that compromises user privacy and security, and indicated its intention to appeal the ruling.
Meta was penalized for failing to offer users a clear choice to use its services—such as Facebook, Instagram, and WhatsApp—without their personal data being merged across platforms. This requirement, a core tenet of the DMA, is aimed at enhancing transparency and user control over personal data. While Meta’s Marketplace service was initially under scrutiny, the Commission dropped its gatekeeper designation after its user base fell below the regulatory threshold.
In its response, Meta accused the Commission of imposing uneven standards that disadvantage American companies while allegedly offering more leniency to European and Chinese competitors.
The European Commission has given both companies a two-month deadline to comply with its rulings or face additional fines. These developments could further strain transatlantic relations, especially with the Trump administration’s history of threatening retaliatory tariffs in response to EU penalties against U.S. tech firms.
The enforcement signals a robust application of the DMA, underscoring the EU’s commitment to curbing the market power of digital giants and establishing a more equitable digital economy.
Recent Random Post:
