The European Commission fined Apple €500 million and Meta €200 million for violating the Digital Markets Act. Apple was penalized for "anti-steering" violations, and Meta for failing to offer a service with less data usage. Both companies plan to appeal.

The European Commission, on Wednesday, found tech giants Apple and Meta in violation of the obligations under the EU's Digital Markets Act (DMA), imposing fines of €500 million ($572 million) on Apple and €200 million on Meta.

Apple was found to have violated the "anti-steering" obligation under the DMA, while Meta was determined not to have provided consumers with the option of using services that collect less personal data, another key requirement under the DMA.

The European Commission, however, closed an investigation into Apple's compliance with user choice obligations after the company made changes to meet the DMA's requirements. Apple now allows users to easily select a default browser and remove pre-installed apps such as Safari.

Apple’s fine stemmed from the Commission’s conclusion that the company had prevented developers from steering users away from the App Store to access cheaper deals.

Meta’s fine was linked to its "pay for privacy" system, which required users to either pay to avoid data collection or agree to share their personal data with Meta-owned platforms, including Facebook and Instagram, in order to continue using them for free.

The European Commission concluded that Meta failed to provide users with a less personalized, yet equivalent, version of Facebook and Instagram and did not offer users the opportunity to freely consent to the combination of their personal data.

The Commission specified that the fine on Meta only applied to the period between March 2024 and November 2024 when the company exclusively offered the "consent or pay" option, before introducing a new ad model that allegedly uses less personal data. This new model is currently under scrutiny by the EU.

Both Apple and Meta have expressed their intent to appeal the penalties, marking the first time fines have been imposed under the DMA, which came into effect last year.

Apple issued a statement saying it would appeal the fine, accusing the European Commission of unfairly targeting the company. It argued that the decision was harmful to user privacy and security, negatively impacted its products, and forced the company to give away its technology for free. Apple further emphasized the extensive efforts and resources it has dedicated to complying with the DMA, despite users not requesting these changes, and criticized the Commission for continuously shifting its expectations.

Meta, in its response, accused the EU of attempting to hinder successful American businesses while allowing Chinese and European companies to operate under different standards.

The fines are expected to heighten tensions between the EU and the United States, especially with US President Donald Trump, who has regularly criticized the bloc for what he perceives as unfair treatment of US companies.

Giulia Torchio, a political analyst from the European Policy Center in Brussels, told DW that if the EU made its digital regulations negotiable in its dealings with the US, it could signal a willingness to compromise on its fundamental democratic principles.

Despite the criticism, European Union Antitrust Commissioner Teresa Ribera defended the fines, saying they sent a "strong and clear message" and described the EU’s action as "firm but balanced."

European Commission spokesperson Thomas Regnier also denied that the fines were aimed at any particular country, stating, "We don’t care who owns the company. We don’t care where the company is located." He emphasized that the EU's focus was on protecting consumers, citizens, and businesses. "Be it a Chinese company, an American company, or a European company, they will have to play by the rules in the European Union, and this is the only thing we're looking at."

Regnier also described the fines as "proportionate," explaining that the amount was determined according to due process, taking into account factors such as the gravity and duration of the breaches, as well as mitigating circumstances. He noted that the DMA is a new law, which has been in effect for just about a year.