The European Commission has imposed hefty fines totaling €700 million on tech giants Apple and Meta for breaching the EU’s Digital Markets Act (DMA), marking the first penalties issued under the new legislation aimed at ensuring fairer digital marketplaces.
Apple received the larger penalty of €500 million for failing to allow alternative app stores on its devices, while Meta was fined €200 million for its controversial “consent or pay” model that required users to either accept personalized advertising or pay for an ad-free subscription on Facebook and Instagram.
The fines, which The Journal reported would be collected by the Irish media regulator since both companies have their European headquarters in Ireland, were reportedly delayed following US President Donald Trump’s global tariff announcement.
Apple’s sanction follows earlier warnings from the EU regarding the company’s App Store practices. The Commission found that Apple imposed “a number of restrictions” limiting how European app developers can conduct business, including charging engineers for software updates and placing commission fees on in-app purchases. The tech giant has been ordered to remove all technical and commercial restrictions for European developers.
The Commission stated that the severity of Apple’s fine reflects “the gravity and duration of the non-compliance” with the DMA, which came into effect last year.
For Meta, the Commission ruled that its “consent or pay” model introduced in November 2023 failed to give users sufficient choice regarding the use of their personal data for targeted advertising. In response, Meta has announced plans to release a new version of its free advertising model that uses less personal data, which is currently under assessment by European regulators.
In a separate decision, the Commission has removed Facebook Marketplace from DMA oversight as it does not meet the threshold of 10,000 or more users, following a request from Meta for review.
Both companies have 60 days to implement changes to their services or face larger penalties. The fines can be legally challenged, though neither company has yet issued a statement on the matter. The European Commission noted it has engaged with both tech firms throughout the process.