BRUSSELS (SUNDIATA POST)- The European Commission on Wednesday imposed 700 million euros in fines on Apple and Meta, accusing them of violating EU legislation on digital markets.
Apple was ordered to pay 500 million euros, while Meta received a 200 million euro penalty. The fines can still be contested in court.
The companies are alleged to have violated the European Union’s Digital Markets Act (DMA), which regulates large online platforms operating in the bloc.
The penalties could have an impact on the current tensions between the United States and the EU, particularly over trade.
The Republican leadership in Washington sees fines imposed by Brussels on big U.S. businesses as a form of taxation.
The commission, the EU’s executive arm, argues that proceedings against U.S. companies are not related to geopolitical tensions, and that they are “firm but balanced.”
EU Commission Vice-President Teresa Ribera said “Apple and Meta have fallen short of compliance with the DMA by implementing measures that reinforce the dependence of business users and consumers on their platforms.’’
Apple is accused by Brussels of having restricted app developers in marketing their products outside Apple’s own app store and failing “to demonstrate that these restrictions are objectively necessary and proportionate,” a commission press release said.
Apple announced it would appeal against the fine.
Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users.
“it is also bad for products, and forces us to give away our technology for free,’’ the company said.
Meta’s fine is linked to its so-called pay-or-consent model in place between March and November 2024, under which Facebook and Instagram users in the EU had to choose between a monthly subscription for an ad-free version and a free version with personalised advertising.
This model violated the DMA, as it did not give users the required specific choice to opt for a service that uses less of their data but is otherwise equivalent to the ‘personalised ads’ service,” the commission said.
Apple and Meta were ordered to comply with the DMA within 60 days, otherwise, they risk periodic penalty payments, the commission stated.
Wednesday’s fines are the first non-compliance decisions under the DMA, which entered into force in 2022.
The penalties could in theory have been higher, the EU law provides for the possibility of imposing fines of up to 10 per cent of annual global turnover. For repeat offenders, this rate can rise to 20 per cent.
In 2024, Apple reported a turnover of just fewer than 400 billion dollars while Meta stated a turnover of around 165 billion dollars. (dpa/NAN)
