Apple was fined 500 million euros ($570 million) and Meta 200 million euros on Wednesday, marking the European Union’s first major penalties under the new Digital Markets Act (DMA), a new law aimed at reining in Big Tech.
The move risks escalating tensions with President Trump, who in February condemned the DMA as a form of “overseas extortion” and pledged to protect American firms from foreign penalties. Trump has also threatened tariffs in response to such actions against U.S. companies.
The fines come after a year-long investigation by the European Commission into whether the companies violated the DMA, which is designed to create more space for smaller competitors in markets dominated by tech giants.
Apple announced it would challenge the fine, while Meta sharply criticized the EU’s decision. In a statement, Meta’s Chief Global Affairs Officer Joel Kaplan said the Commission was “attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards.” He added, “This isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service.”
According to the Commission, Apple must eliminate restrictions that prevent developers from directing users to lower-cost options outside the App Store. Meta was penalized over its pay-or-consent ad model, which the EU found to be non-compliant between its launch in November 2023 and an updated version introduced in November 2024.
Meta is now in talks with regulators to determine whether the revised model meets DMA standards. Both companies have two months to comply or face further daily fines.
Alphabet’s Google and Elon Musk’s X could also face penalities under the same law.
