The European Union has fined Apple and Meta a combined €700 million ($797 million) for breaching the bloc’s digital competition laws. The penalties come amid attacks on the EU by the Trump administration for what it sees as the bloc’s unfair targeting of American companies.
The penalties mark the first issued under the Digital Markets Act (DMA), legislation introduced in 2022 to rein in what the EU views as monopolistic practices by dominant digital “gatekeepers.”
The DMA represents one of the world’s most ambitious efforts to regulate the digital economy. It imposes stringent obligations on a select group of companies deemed “gatekeepers,” and gives regulators the authority to preemptively intervene in platform business models rather than waiting for harm to materialize.
European Commission Vice President Teresa Ribera defended the penalties, calling them “firm but balanced enforcement action.” She added: “All companies operating in the EU must follow our laws and respect European values.”
Both Apple and Meta are expected to appeal the rulings. They have 60 days to comply or face additional penalties.
Apple fined for App Store restrictions
Apple was hit with a €500 million ($570 million) penalty after EU regulators concluded that the company unfairly restricted app developers from informing users about alternative purchase options outside of the Apple App Store. These actions, the European Commission said, violated DMA provisions designed to promote openness and consumer choice in digital marketplaces.
“Consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers,” said the European Commission in a statement.
In addition to the fine, Apple received a cease-and-desist order requiring it to adjust its App Store practices by June or face further daily penalties.
The big tech company rejected the ruling, calling it a threat to user privacy and product integrity. “Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free,” Apple stated.
Meta penalized over “Consent or Pay” Model
Meta, parent company of Facebook and Instagram, was fined €200 million ($229 million) for violating the DMA through its controversial “consent or pay” model. Under this framework, users must either accept cookies for personalized advertising or pay a monthly fee for an ad-free experience—an approach regulators argue undermines users’ ability to provide free and informed consent.
The Commission concluded that Meta’s model failed to provide a truly equivalent alternative to users who declined data tracking. DMA rules mandate that users must be offered meaningful choices regarding their personal data without being coerced into forgoing service access.
Meta strongly criticized the decision. “The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards,” Joel Kaplan, Meta’s chief global affairs officer, said in a statement. “This isn’t just about a fine; the commission forcing us to change our business model effectively imposes a multibillion-dollar tariff on Meta while requiring us to offer an inferior service.”
Meta said it was likely to appeal the ruling, calling it an attack on American companies akin to imposing steep tariffs on their services.
Broader regulatory shift—and a Transatlantic Flashpoint
While these are the first DMA-related fines, both companies are familiar targets of EU scrutiny. Apple was fined €1.8 billion in 2024 over anti-competitive practices in music streaming, and Meta received nearly €800 million in combined fines last year for antitrust violations tied to its ad services.
But unlike past sanctions, this latest enforcement could deepen transatlantic tensions. U.S. National Security Council spokesman Brian Hughes responded sharply, describing the fines as a “novel form of economic extortion” and warning they “will not be tolerated by the United States.”
“Extraterritorial regulations that specifically target and undermine American companies, stifle innovation, and enable censorship will be recognized as barriers to trade and a direct threat to free civil society,” Hughes said in a statement.
US Tech lobby mobilizes
The fines have triggered a fresh wave of lobbying in Washington. Industry groups argue the Digital Markets Act unfairly singles out U.S. firms while leaving European and Chinese competitors untouched. Some executives and legal experts have begun likening the financial penalties and operational restrictions to de facto tariffs, a comparison seemingly aimed at drawing a more aggressive response from President Donald Trump, who has previously threatened retaliatory measures.
Katie Harbath, a former public policy director at Meta, remarked, “Now that the EU’s tech competition rules have finally hit U.S. companies directly, we’re starting to see the rubber hit the road.”