EU fines Apple and Meta for breaching digital markets act

The European Union has imposed landmark fines on Apple and Meta, totaling €700m, for violating the Digital Markets Act (DMA), a regulation aimed at limiting Big Tech’s market dominance.

Apple was fined €500m for preventing developers from directing users to cheaper options outside the App Store. It also faces criticism for blocking other app marketplaces and instituting a new developer fee. However, Apple avoided sanctions in a different browser-choice instance by following DMA guidelines, according to Reuters.

Meta received a €200m fine for its “pay-or-consent” model on Facebook and Instagram, which regulators say limits user choice by forcing them to accept tracking or pay for ad-free access.

Both companies criticized the EU’s decision. Apple claims the ruling harms user privacy, while Meta accuses the EU of targeting US firms unfairly, Reuters reported.

The companies have two months to comply or face further sanctions. The Commission says the actions are part of a fair and balanced enforcement of digital competition rules.