The European Commission imposes historic fines on tech giants for anti-competitive practices, marking a major enforcement of new digital regulations.
EU Takes Action Against Tech Giants
The European Commission announced on Wednesday that Apple and Meta are the first companies to be fined under the EU’s new Digital Markets Act (DMA). Apple faces a €500 million ($570M) penalty, while Meta has been fined €200 million ($230M).
Why Apple Was Fined
Apple violated DMA rules by restricting app developers from freely communicating with customers about promotions and alternative payment options. The EU requires Apple to: – Allow developers to inform users about discounts and offers outside the App Store. – Remove technical and commercial barriers that limit developer-user interactions.
Meta’s “Pay or Consent” Model Deemed Illegal
Meta was penalized for forcing users to either: – Accept personalized ads (data tracking) – Or pay for ad-free versions of Facebook and Instagram. This violates DMA rules requiring companies to provide equivalent services without coercive data collection.
Broader Implications
The fines come amid growing US-EU tech tensions. The U.S. previously warned against targeting American firms, but the EU insists all companies must comply with its laws. Apple and Meta have 60 days to comply or face additional penalties.
These rulings signal the EU’s strong stance against Big Tech’s dominance, aiming to create a fairer digital market for competitors and consumers alike.