THURSDAY April 24, 2025 |
By thenewsdesk.ng
The European Commission on Wednesday levied a total of €700 million in fines against Apple and Meta, accusing the US tech giants of breaching the European Union’s Digital Markets Act (DMA), which aims to rein in the dominance of large online platforms operating within the bloc.
Apple was fined €500 million, while Meta received a €200 million penalty. Both companies retain the right to challenge the decisions in court.
The Commission contends that the firms implemented practices which undermine fair competition and user autonomy, in violation of the DMA. The action marks the EU’s first formal sanctions under the legislation, which took effect in 2022.
The development is likely to sharpen existing transatlantic tensions, particularly around trade. In Washington, Republican leaders have criticised what they see as punitive actions by Brussels, equating the fines with an indirect form of taxation on major US corporations.
The European Commission, however, maintains that its enforcement actions are independent of geopolitical factors. It characterises its stance as “firm but balanced.”
Speaking on the matter, EU Commission Vice-President Teresa Ribera said: “Apple and Meta have fallen short of compliance with the DMA by enforcing practices that increase the dependency of business users and consumers on their platforms.”
Apple stands accused of restricting app developers from informing users about alternative purchasing options outside the Apple App Store. The Commission argued that Apple had failed to justify these limitations as either necessary or proportionate, according to a formal press statement.
Apple responded by confirming its intention to appeal the decision. “Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of rulings that undermine the privacy and security of our users. It also damages product innovation and compels us to hand over our technology without compensation,” the company said.
Meta’s fine concerns its “pay-or-consent” approach used between March and November 2024. During that period, Facebook and Instagram users in the EU were required to choose between paying for an ad-free experience or using the platform for free while consenting to personalised advertising.
The Commission ruled that this model breached the DMA, as it did not provide users with a meaningful choice to access a service that used less of their personal data but was otherwise comparable to the version with personalised ads.
The Commission has ordered both companies to bring their practices into line with the DMA within 60 days or face further daily penalties.
While the current fines are substantial, EU law allows for significantly harsher sanctions. Regulators may impose penalties of up to 10 per cent of a company’s global annual turnover, with the possibility of increasing this to 20 per cent for repeat violations.
In 2024, Apple reported global revenues just under $400 billion, while Meta posted figures close to $165 billion.
