EU Fines Apple 5 Billion Euros, Meta 2 Billion Euros for DMA Violations

The European Union has imposed a significant fine on two major tech giants, Apple and Meta, totaling 7 billion euros. The fines, amounting to 5 billion euros for Apple and 2 billion euros for Meta, are based on violations of the EU's Digital Markets Act (DMA). This move comes at a time when the EU and the U.S. are engaged in delicate trade negotiations, potentially exacerbating tensions between the two regions.

The EU regulatory body accused Apple of breaching DMA provisions related to anti-steering obligations, while Meta was found to have violated the DMA's requirements to offer consumers the option to use services with less personal data. The EU Commission warned that if the companies do not comply within 60 days, they will face additional periodic penalties.

Executive Vice-President Teresa Ribera, responsible for clean, fair, and competitive transformation, stated, "Apple and Meta have implemented measures that reinforce the dependency of business users and consumers on their platforms, failing to fully comply with the DMA. Therefore, we have taken firm and proportionate enforcement actions against these companies based on clear and predictable rules."

The EU Commission also decided to terminate its investigation into Apple's user choice obligations under the DMA. The regulatory body informed Apple of its preliminary findings that the company's contractual terms for alternative app distribution violated the DMA.

Additionally, the EU Commission determined that Meta's online intermediary service, Facebook Marketplace, should no longer be considered subject to the DMA's constraints. This decision was based on the finding that the service does not meet the criteria for being a "gatekeeper" under the DMA.

In September 2023, the EU Commission designated six major "gatekeeper" companies under the DMA: Google, Amazon, Apple, Meta, Microsoft, and the Chinese tech giant ByteDance. Certain products offered by these companies are regulated under both the DMA and the EU's Digital Services Act (DSA). The DSA aims to regulate online intermediary platforms used by millions of Europeans daily, with the goal of protecting consumers and their rights in the digital space.

In November 2024, reports indicated that Apple would face the EU's first-ever fine under the DMA for large tech companies. However, the iPhone manufacturer has been working to comply with the DMA's requirements. In March of the previous year, the EU Commission initiated investigations into potential DMA violations by Apple, Google, and Meta.

In January of this year, the EU Commission was reportedly reassessing its investigations into companies including Apple, Meta, and Google. This reassessment comes as the EU continues to enforce its digital regulations, aiming to create a more competitive and fair digital market.