The European Commission has fined Apple €500m ($568.7m) and Meta €200m ($277.7m) for violating the Digital Markets Act (DMA), which aims to ensure fair competition and user choice in the digital market.
The move marks the first time non-compliance decisions have been made under the DMA.
In March 2024, the Commission initiated non-compliance investigations into Apple’s App Store rules and Meta’s advertising model.
Preliminary findings were communicated to the companies in June and July 2024, indicating potential DMA breaches.
The Commission determined that Apple violated the DMA’s anti-steering rules by restricting app developers from informing users about alternative purchasing options outside the App Store.
These restrictions, the Commission found, prevent both developers and consumers from benefitting fully from alternative offers. Apple was also found to have failed to justify these limitations as necessary or proportionate.
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By GlobalDataIn response, the Commission has ordered Apple to eliminate these technical and commercial restrictions and avoid similar conduct in the future.
A separate investigation into Apple’s user choice obligations has also been closed following what the Commission described as “early and proactive engagement” by the company to reach a compliance solution.
Meta faced scrutiny for its ‘Consent or Pay’ advertising model, which the Commission determined did not comply with the DMA’s requirements for user consent and equivalent service options.
In March 2023, Meta implemented a Consent or Pay model for EU users of Facebook and Instagram. This model required users to either consent to data combination for personalised advertising or pay for an ad-free experience.
The Commission found this approach non-compliant, stating that it failed to provide an equivalent, less personalised service for those who declined to share their data.
Meta’s model was also judged to hinder users’ ability to freely give consent for data use.
Although Meta introduced a revised model in November 2024, the Commission’s decision concerns the earlier period, between March to November 2024, when only the binary choice was available.
The revised model is currently under assessment, with the Commission continuing its dialogue with Meta and requesting further evidence on the model’s practical impact.
Additionally, the Commission has removed the designation of Meta’s Facebook Marketplace as a DMA gatekeeper following Meta’s request and a review of its business user numbers and enforcement measures.
Commenting on the EU’s fines, City law firm DMH Stallard partner and a compliance specialist Jonathan Compton said: “The Digital Markets Act (DMA) is aimed at the prevention of large companies from using their market dominance to distort or prevent competition.
“Apple was asked – and failed – to provide customers with a ‘steer’ to alternative core service providers.
“Meta failed to comply with the obligation to remove its consent or pay model. Under this model, Meta users could consent to the use of their data or, if they refused, were asked to pay a subscription.
“Whether the Trump administration will choose to impose additional tariffs on the EU is open to question. The US President has no love for the EU and has fiercely criticised the DMA. For its part, the Commission has not backed away from the fight so far and has the market power to counter US moves.”
Both Apple and Meta have 60 days to comply with the Commission’s decisions to avoid additional penalties.
EU executive vice-president for Clean, Just and Competitive Transition Teresa Ribera said: “Today’s decisions send a strong and clear message. The Digital Markets Act is a crucial instrument to unlock potential, choice and growth by ensuring digital players can operate in contestable and fair markets.
“It protects European consumers and levels the playing field. Apple and Meta have fallen short of compliance with the DMA by implementing measures that reinforce the dependence of business users and consumers on their platforms.
“As a result, we have taken firm but balanced enforcement action against both companies, based on clear and predictable rules. All companies operating in the EU must follow our laws and respect European values.”
