The European Union has hit Apple and Meta with a combined €700 million ($797 million) fine — its first major enforcement under the Digital Markets Act (DMA), a sweeping new law aimed at curbing Big Tech’s dominance.
Apple was fined €500 million ($570 million) for restricting app developers from steering users to cheaper deals outside its App Store.
Meta was fined €200 million ($228 million) over its “consent or pay” ad model, which forced users to either accept extensive data tracking or pay for ad-free services.
The European Commission said Meta’s model violated users’ data protection rights, and criticized Apple for creating barriers that prevented users from discovering alternative purchase options outside the App Store — breaking the DMA’s ‘steering’ rule.
“Consumers cannot fully benefit from alternative and cheaper offers,” the Commission said.
US Officials Cry Foul
Meta’s Global Affairs Chief Joel Kaplan fired back, calling the fines a “multibillion-dollar tariff on American innovation”, and accusing Brussels of weaponizing regulation against successful U.S. companies.
“This isn’t just about a fine… it forces us to offer an inferior service,” Kaplan said.
Apple echoed the outrage, saying the ruling forced them to “give away (our) technology for free,” despite having spent “hundreds of thousands of engineering hours” to comply.
Both firms have said they will appeal the decision.
Trump Administration Responds with Tariff Threats
The penalties come amid rising transatlantic trade tensions, with President Donald Trump accusing the EU of “screwing the United States”. Earlier this month, Trump announced a 20% tariff on EU imports, though its implementation has been delayed until July.
Trump’s adviser Peter Navarro has also claimed the EU is engaged in “lawfare” to unfairly target American tech giants.
What’s Next?
The fines, while large, remain well below the DMA’s maximum penalties (up to 10% of annual global revenue, or 20% for repeat offenders).
- Apple earned $391B last year
- Meta made $164B
But the symbolism is significant. The EU has fired its first major shot under the DMA — and with 60 days to pay up, the tech titans now face mounting pressure to overhaul their European business models.
As tensions rise, expect more legal clashes and trade retaliation — and a front-row seat to the next chapter of the US–EU tech showdown.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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