EU hits Apple and Meta with hundreds of millions of dollars in new fines, enforcing digital competition rules

The European Union watchdogs have imposed hefty fines on Apple and Meta for violating the bloc’s digital competition rules. Apple was fined 500 million euros for restricting app developers from directing users to cheaper alternatives outside of its App Store. On the other hand, Meta Platforms, formerly known as Facebook, was fined 200 million euros for forcing users to choose between viewing ads or paying to avoid them.

These fines, although significant, are smaller compared to previous penalties imposed on Big Tech companies by the European Commission in antitrust cases. Both Apple and Meta have been given 60 days to comply with the decisions or face additional penalty payments.

The enforcement of these fines was delayed due to tensions with the United States over trade regulations. However, the EU’s Digital Markets Act (DMA) aims to provide consumers and businesses with more choices and prevent Big Tech companies from dominating digital markets as gatekeepers.

Henna Virkkunen, the commission’s executive vice-president for tech sovereignty, emphasized the importance of the DMA in giving citizens control over their data usage online and enabling businesses to communicate freely with their customers. The decisions against Apple and Meta were made under the DMA, which aims to ensure a level playing field in the digital market.

Both Apple and Meta have expressed their intention to appeal the fines. Meta’s Chief Global Affairs Officer, Joel Kaplan, accused the European Commission of unfairly targeting successful American businesses while allowing Chinese and European companies to operate under different standards. Apple, on the other hand, criticized the Commission for continuously changing the rules despite the company’s efforts to comply.

In the case of Apple, the Commission accused the tech giant of imposing unfair rules on app developers, preventing them from directing consumers to cheaper options. The DMA requires companies to allow developers to inform customers of cheaper purchasing options and direct them to those offers. Apple has been ordered to remove restrictions that prevent developers from steering users to other channels.

Meta’s investigation focused on the company’s strategy to comply with European data privacy rules by offering users the option to pay for ad-free versions of Facebook and Instagram. However, regulators raised concerns about the company’s model not allowing users to freely consent to personalized ads based on their data across various services.

Overall, the European Commission’s enforcement of fines against Apple and Meta underscores the importance of fair competition in the digital market. These actions are part of a broader effort to regulate Big Tech companies and prevent them from abusing their dominant positions.