The European Commission on Wednesday imposed a €500 million fine on Apple and a €200 million fine on Meta under its Digital Markets Act (DMA), marking a significant move by the EU watchdog to address anti-competitive practices in the digital sector.
Apple has been fined for violating regulations related to app store rules, while Meta was penalized for its "pay or consent" advertising model, which mandates EU users to pay for ad-free versions of Facebook and Instagram.
Along with the fine, Apple was issued a cease-and-desist order to implement further product changes by late June, with the potential for additional fines if it fails to comply. The Commission is also reviewing changes Meta made last year to comply with the DMA.
The DMA, which came into effect in 2024, aims to ensure fair competition by regulating "gatekeeper" tech companies, ensuring consumers have more control over their data and business communication. The Commission stated that both Apple and Meta must change their behavior to restore free choice for users.
Both companies have issued complaints about the penalties.
Apple accused the commission of “unfairly targeting” the iPhone maker, saying it has “spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law."
Meta Chief Global Affairs Officer Joel Kaplan said in a statement said the “Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards.”
(With agency inputs)
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.