The European Commission has imposed hefty fines on Apple (€500 million) and Meta (€200 million) for violating key provisions of the Digital Markets Act (DMA), marking the first non-compliance rulings under the new legislation aimed at curbing the dominance of Big Tech in the EU's digital economy.
The Commission's decision follows months of investigation and dialogue with the two tech giants. Apple was found to have breached its obligations related to app store “steering,” while Meta's penalty stems from its implementation of a “consent or pay” advertising model that failed to give users a genuine choice regarding personal data use.
The Digital Markets Act, which became enforceable in March 2024, aims to ensure fair competition in the EU's digital space by imposing specific conduct obligations on designated “gatekeepers.” Companies failing to meet these standards can be fined up to 10% of their global annual turnover.
Apple's steering restrictions
Under the DMA, gatekeepers like Apple are required to allow app developers to freely inform users of alternative purchasing options outside the App Store — without charging for or restricting this communication. The Commission determined that Apple's ongoing commercial and technical restrictions effectively prevented developers from steering users to external offers and hindered consumer access to potentially cheaper options.
Although Apple engaged proactively on other DMA fronts — leading to the closure of a separate investigation into user choice obligations — the company failed to justify the necessity or proportionality of its steering restrictions. The Commission has now ordered Apple to lift these constraints and to avoid implementing similar tactics in the future. The €500 million fine reflects the severity and persistence of the non-compliance.
Apple, headquartered in Cupertino, California, is one of the world's most influential technology companies, operating a tightly controlled ecosystem of hardware, software, and services. The App Store is a core revenue driver for the company, which takes a commission of up to 30% on digital purchases made through its platform.
Meta's “Consent or Pay” advertising model
Meta, formerly Facebook, was fined €200 million for failing to comply with user data protection obligations under the DMA. The company introduced a binary model across Facebook and Instagram in March 2024, giving users a stark choice: agree to data tracking for personalized ads or pay a monthly fee for an ad-free experience. The Commission concluded this did not constitute a valid alternative because users were not offered a meaningful option to access a less intrusive service without incurring a cost.
In November 2024, Meta rolled out a revised ad model that purported to use less personal data for targeting. While the Commission is still reviewing the efficacy of this update, today's decision focuses solely on the period from March to November 2024, during which Meta's offering failed to meet legal standards.
Meta, based in Menlo Park, California, operates some of the world's largest social networking platforms. The company generates most of its revenue from targeted advertising, making user data a critical asset in its business model.
Meta's Chief Global Affairs Officer, Joel Kaplan, stated in response to EU Commission's decision that this is an attempt to give Chinese technology firms an unfair advantage, while also harming European consumers and economy.
Both Apple and Meta have 60 days to comply with the Commission's rulings or face recurring penalty payments. The Commission, which initiated these investigations in March 2024, continues to engage with both companies to ensure full compliance and prevent future violations.
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