The European Union (EU) on Wednesday imposed fines totalling 700 million euros on tech giants Apple and Meta for breaching digital competition regulations, a move that could escalate tensions with the United States under President Donald Trump.
The penalties risk further straining the already complex relationship between the EU and Trump, particularly as they negotiate a deal to avoid his broad tariffs on European goods.
The European Commission fined Apple 500 million euros ($570 million) after determining that the company restricted developers from informing users about cheaper deals available outside its App Store.
Separately, Meta was fined 200 million euros for its pay or consent system, which the EU found violated rules regarding the use of personal data on Facebook and Instagram.
These are the first fines issued under the Digital Markets Act (DMA), which took effect last year and compels major global tech companies to foster competition within the EU.
The commission warned that these fines could increase if Meta and Apple fail to comply within a 60-day timeframe, threatening the US companies with “periodic penalty payments.”
Over the past two years, the EU has strengthened its legal framework with the Digital Services Act and the DMA. However, concerns have arisen since Trump’s return to the White House that the EU might hesitate to enforce these laws.
Trump has frequently criticised the EU’s digital regulations and taxes, labelling them “non-tariff barriers” to trade, and many tech CEOs have aligned themselves with his administration.
He has previously imposed tariffs on steel, aluminium, and auto imports from the EU, which Brussels hopes to have lifted through a negotiated agreement.
Antitrust Commissioner Teresa Ribera stated that the fines “send a strong and clear message,” asserting that the EU has taken “firm but balanced enforcement action.”
The fines, stemming from investigations initiated in March 2024, are notably smaller than some previous penalties against US Big Tech companies. For instance, Apple was fined 1.8 billion euros in March 2024 under different EU rules for similar App Store offences.
Apple faces ongoing scrutiny, with the EU also issuing preliminary findings indicating a breach of the DMA for not adequately facilitating rival alternatives to its App Store, potentially leading to another substantial fine.
Apple, however, strongly criticised the decisions and announced its intention to appeal the fine, arguing that the EU is unfairly targeting the company and forcing it to give away its technology for free, harming user privacy and security.
Meta also condemned the EU’s actions, accusing it of “attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards.”
Meta’s chief global affairs officer, Joel Kaplan, a prominent Republican and Trump ally, stated that the forced changes to their business model effectively impose a multi-billion-dollar tariff on Meta and require them to offer an inferior service.
In a positive development for Apple, the EU closed its investigation into its user choice obligations after the company complied with the DMA by making it easier for users to select a default browser and remove pre-installed apps like Safari.
The fine against Meta specifically targeted its “pay for privacy” system, introduced in November 2023, which has been heavily criticised by European rights advocates. This system requires users to either pay a fee to avoid data collection or consent to share their data with Facebook and Instagram to use the platforms for free.
The commission concluded that Meta did not offer Facebook and Instagram users a less personalised but equivalent free version of the platforms and failed to allow users to freely consent to the combination of their data.
Meta proposed a new version of this system in November of the previous year, which is currently under EU assessment.
