EU cracks down on big tech behavior with fines on Apple and Meta
Pranjal Chandra | Apr 23, 2025, 20:00 IST
( Image credit : ETtech )
The European Union has levied substantial fines against Apple and Meta, totaling 700 million euros, for violating the Digital Markets Act and GDPR. Apple is penalized for restricting app developers from informing users about cheaper subscription alternatives outside its App Store.
In a significant escalation of its digital oversight, the European Union fined two of Silicon Valley’s biggest players Apple and Meta a combined 700 million euros this week, underscoring the bloc’s commitment to reining in anti-competitive behavior and protecting consumer data rights. The fines, though less than past multibillion-euro penalties, mark the first high-profile enforcement under the new Digital Markets Act (DMA) a sweeping regulatory framework aimed at curbing the dominance of so-called "gatekeeper" tech giants.
Fine: 500 million euros
Violation: Blocking developers from informing users about cheaper alternatives outside the App Store
Apple’s fine stems from long-standing complaints about its App Store policies, which regulators say unfairly restricted app developers from guiding users to cheaper subscription options available outside Apple’s in-app payment system. By doing so, Apple allegedly limited consumer choice and maintained its hefty commission-based revenue model.
The European Commission stated that Apple must now eliminate any technical or commercial barriers that prevent developers from communicating alternative offers to users a requirement the company had resisted.
Apple responded with frustration, claiming the EU is “moving the goal posts” despite “hundreds of thousands of engineering hours” invested in compliance. The tech giant insisted that the changes demanded are neither wanted by users nor reflective of developer needs.
Fine: 200 million euros
Violation: Offering a binary choice between personalized ads or paid subscriptions
Meta, parent company of Facebook and Instagram, was penalized for its approach to user consent under the EU’s strict privacy laws. The company recently introduced a paid tier for users who wish to opt out of personalized ads, charging around 10 euros per month. Regulators argue this “pay-or-consent” model doesn’t offer genuine choice and could undermine users' rights under the General Data Protection Regulation (GDPR).
The European Commission emphasized that consent must be “freely given,” and criticized Meta’s approach for coercing users into either paying or relinquishing control over their personal data. While Meta did roll out a third option allowing users to see fewer personalized ads, the Commission is still evaluating whether this modification aligns with EU standards.
Joel Kaplan, Meta’s Chief Global Affairs Officer, pushed back, characterizing the EU’s enforcement as “a multi-billion-dollar tariff” on American firms. He accused the bloc of applying double standards that put U.S. tech companies at a disadvantage compared to Chinese and European firms.
These fines represent more than just monetary penalties they are a clear signal that the EU intends to rigorously enforce its new digital rulebook. The Digital Markets Act, which took effect in 2023, is designed to prevent tech giants from monopolizing digital markets and to ensure fairer terms for both consumers and smaller businesses.
Henna Virkkunen, the Commission’s Executive Vice-President for Tech Sovereignty, framed the enforcement as a defense of user rights and business freedom:
Despite criticism from U.S. companies, EU officials defended their neutrality, stating the rules apply uniformly, regardless of where a company is based.
Both Apple and Meta have announced plans to appeal the fines, setting the stage for prolonged legal battles. However, under the DMA, companies must comply within 60 days or face additional “periodic penalty payments,” whose details remain unspecified but could escalate quickly.
This enforcement may be just the beginning, as the EU continues to investigate other Big Tech practices. With the DMA now in full swing, the message from Brussels is unmistakable: digital giants can no longer play by their own rules in the European market.
Apple penalized for restricting competition in app store
Violation: Blocking developers from informing users about cheaper alternatives outside the App Store
Apple’s fine stems from long-standing complaints about its App Store policies, which regulators say unfairly restricted app developers from guiding users to cheaper subscription options available outside Apple’s in-app payment system. By doing so, Apple allegedly limited consumer choice and maintained its hefty commission-based revenue model.
The European Commission stated that Apple must now eliminate any technical or commercial barriers that prevent developers from communicating alternative offers to users a requirement the company had resisted.
Apple responded with frustration, claiming the EU is “moving the goal posts” despite “hundreds of thousands of engineering hours” invested in compliance. The tech giant insisted that the changes demanded are neither wanted by users nor reflective of developer needs.
Meta fined over data privacy consent model
Violation: Offering a binary choice between personalized ads or paid subscriptions
Meta, parent company of Facebook and Instagram, was penalized for its approach to user consent under the EU’s strict privacy laws. The company recently introduced a paid tier for users who wish to opt out of personalized ads, charging around 10 euros per month. Regulators argue this “pay-or-consent” model doesn’t offer genuine choice and could undermine users' rights under the General Data Protection Regulation (GDPR).
The European Commission emphasized that consent must be “freely given,” and criticized Meta’s approach for coercing users into either paying or relinquishing control over their personal data. While Meta did roll out a third option allowing users to see fewer personalized ads, the Commission is still evaluating whether this modification aligns with EU standards.
Joel Kaplan, Meta’s Chief Global Affairs Officer, pushed back, characterizing the EU’s enforcement as “a multi-billion-dollar tariff” on American firms. He accused the bloc of applying double standards that put U.S. tech companies at a disadvantage compared to Chinese and European firms.
A new era of digital governance
Henna Virkkunen, the Commission’s Executive Vice-President for Tech Sovereignty, framed the enforcement as a defense of user rights and business freedom:
Despite criticism from U.S. companies, EU officials defended their neutrality, stating the rules apply uniformly, regardless of where a company is based.
Appeals expected, but DMA has teeth
This enforcement may be just the beginning, as the EU continues to investigate other Big Tech practices. With the DMA now in full swing, the message from Brussels is unmistakable: digital giants can no longer play by their own rules in the European market.