Apple and Meta Slammed with Multimillion-Euro Fines for Violating EU Digital Markets Act
Published Date: 24th Apr, 2025
In a major blow to two of the world’s biggest tech giants, Apple and Meta have been slapped with hefty fines totaling over €700 million for violating the European Union’s Digital Markets Act (DMA). The fines, announced today, underscore the EU’s growing resolve to rein in the influence of Big Tech and ensure fair competition within the digital marketplace.
The Digital Markets Act: A New Era of Regulation
The Digital Markets Act, which came into effect in 2024, aims to regulate major online platforms deemed "gatekeepers" in the digital space—companies that control vast segments of the online ecosystem, like search engines, social media platforms, and app stores. The Act is part of the EU’s broader effort to curb anti-competitive practices and level the playing field for smaller businesses that have long struggled to compete with the dominant market players like Apple, Meta, and Google.
The fines against Apple and Meta come as a result of non-compliance with several key provisions of the DMA, particularly those aimed at ensuring open and transparent digital markets. Both companies had been warned multiple times over the past year, but have failed to meet the requirements for fair competition, leading to today’s punitive measures.
Apple's Violation: Restricting Competition in App Store Payments
Apple’s violation centers on its App Store policies, specifically its mandatory in-app payment system. Under the Digital Markets Act, Apple is required to allow alternative payment systems within its App Store, which would offer users the option to make payments outside of Apple’s payment infrastructure. This rule is designed to prevent Apple from unfairly profiting from every transaction made on its platform.
However, Apple continued to enforce its exclusive in-app payment system, preventing developers from offering lower-cost payment options. The EU fined Apple €500 million, marking one of the largest fines ever levied against the company. This fine is seen as a signal to other tech giants that the EU is serious about enforcing the DMA's provisions.
Apple, which has repeatedly faced accusations of anti-competitive practices related to its App Store, has vowed to appeal the decision. The company argues that its payment system is essential for ensuring user security and the integrity of its platform, although regulators disagree, arguing that it stifles competition and leads to inflated prices for consumers.
Meta's Violation: Discriminatory Ad Practices on Social Platforms
Meta, the parent company of Facebook and Instagram, was fined €200 million for violating the Digital Markets Act’s rules on advertising transparency. The company has been accused of engaging in discriminatory advertising practices that favored its own advertising tools over third-party services, effectively creating an unfair monopoly on its platforms.
The EU investigation revealed that Meta’s advertising system heavily restricted access to competitors, forcing advertisers to exclusively use Meta’s in-house tools if they wanted to effectively reach their target audience on Facebook and Instagram. This practice, according to the EU, not only undermines competition but also harms businesses that rely on alternative advertising platforms.
Meta, like Apple, has expressed its intention to challenge the fine, but the company’s ability to successfully reverse the decision remains uncertain. Meta has already been under increased scrutiny in Europe over data privacy and antitrust concerns, making this new fine another significant blow to its operations in the region.
The EU’s Hardline Stance: A Message to Big Tech
The fines against Apple and Meta represent a clear message from the EU to the tech industry: the era of unchecked dominance by Big Tech is over. The Digital Markets Act is part of a broader regulatory push to reshape the digital economy, with similar laws targeting data privacy, algorithm transparency, and artificial intelligence regulation also on the horizon.
These fines are just the latest in a series of regulatory actions against major tech companies in Europe. Over the past few years, the EU has imposed billions of euros in fines on Google for anti-competitive behavior and has launched investigations into Amazon’s market practices. With the advent of the DMA, the EU is signaling a new phase in its regulatory efforts—one that seeks to bring even more accountability and fairness to the digital space.
What’s Next for Apple and Meta?
For both Apple and Meta, the road ahead looks challenging. Both companies will need to adjust their business practices to comply with the Digital Markets Act’s requirements, potentially altering the way they operate their app stores and advertising platforms in the EU. Failure to comply could result in even larger fines, or in extreme cases, forced structural changes to their businesses.
In the short term, both Apple and Meta will likely appeal the fines, but the EU’s determination to enforce its new regulations means that these companies may face ongoing scrutiny. This battle is not just about the financial penalties, but about the broader fight for control over the digital economy—and the future of how Big Tech interacts with consumers and smaller businesses.
Date: 24th Apr, 2025
