EU Fines Apple and Meta Under Landmark Digital Markets Act
First Penalties Under the DMA
On Wednesday, the European Commission issued its first enforcement actions under the Digital Markets Act (DMA), imposing significant penalties on Apple and Meta for failing to comply with the newly implemented regulations.
What Is the Digital Markets Act?
The Digital Markets Act (DMA), adopted by the European Union in July 2022, is a regulatory framework designed to address the power imbalances created by large, systemic digital platforms, referred to as "gatekeepers." These platforms, due to their substantial size and influence, can control access to critical services and markets, creating barriers for smaller competitors. The DMA seeks to curtail anti-competitive practices by imposing a clear set of rules and obligations specifically targeting gatekeepers.
The DMA establishes a set of ex ante obligations for these companies, which include prohibiting self-preferencing, restricting the use of unfair practices such as tying and bundling, and ensuring transparency in user data processing. The regulation also mandates that gatekeepers facilitate interoperability with third-party services and refrain from blocking users or businesses from accessing competing platforms. The goal of the DMA is to restore competition in the digital market by enforcing practices that promote fairness, transparency, and user autonomy.
Importantly, the DMA provides the European Commission with the authority to impose significant fines and other penalties on companies that fail to comply with these requirements. These include daily fines for continuing violations and the potential for structural remedies, such as the forced divestment of parts of a company’s business. The DMA is thus a powerful tool aimed at ensuring that dominant platforms do not undermine competition or harm consumers by abusing their market position.
Penalties for Noncompliance
Apple has been fined €500 million for violating provisions of the DMA related to its operation of the App Store, while Meta has incurred a €200 million penalty for its “pay or consent” advertising model. This model gives users a choice: either pay a subscription fee for ad-free access to Facebook and Instagram or consent to having their data used for personalized advertising. The Commission raised concerns that this approach limits genuine user choice and may pressure individuals into accepting data tracking.
These fines are the result of yearlong investigations by the European Commission into the practices of both U.S.-based tech giants. In addition to the financial penalty, Apple has been issued a cease-and-desist order and must implement additional product changes by late June. Failure to comply could result in further daily fines.
Ongoing Compliance Reviews
The Commission is also currently reviewing changes Meta implemented in late 2024 in response to the regulation. While substantial, these DMA-related fines are smaller than past penalties issued under separate EU antitrust laws. In 2023, Apple was fined €1.8 billion for anti-competitive practices in the music streaming sector, and Meta received a €797 million fine for promoting its classified ads platform unfairly.
An EU official indicated that the Commission took into account that these were the first fines issued under the DMA, and that Meta’s infringement had ceased shortly after initial regulatory feedback.
Mixed Outcomes for Apple and Meta
In total, the Commission adopted five DMA-related decisions on the same day. Both companies received partial reprieves:
The EU closed an investigation into Apple’s browser and default app practices following changes that allowed better access for competitors such as Mozilla.
The Commission also removed Facebook Marketplace from the list of services regulated under the DMA, narrowing the scope of Meta’s obligations.
Further Scrutiny Ahead
Meanwhile, enforcement actions against Apple intensified. The Commission issued a formal statement of objections over Apple’s handling of third-party app marketplaces—a move that could lead to additional sanctions if the concerns are substantiated after further investigation.
Commission Statement
In a press release, EU Competition Commissioner Teresa Ribera stated:
“Apple and Meta have failed to fully comply with the DMA by implementing policies that increase the dependency of both consumers and businesses on their platforms. We are enforcing these rules decisively, yet fairly, to ensure a level playing field.”
Conclusion
The European Commission's enforcement of the Digital Markets Act marks a pivotal moment in regulating the tech industry, highlighting the EU's commitment to fostering competition and safeguarding user rights in the digital marketplace. While the fines levied against Apple and Meta underscore the seriousness with which the Commission is holding gatekeepers accountable, they also serve as a warning to other major tech companies. As the regulatory landscape evolves, the DMA is set to become a critical tool in ensuring that digital platforms operate in a manner that promotes fairness, innovation, and user choice. The ongoing investigations and adjustments to the DMA will likely continue to shape the future of digital market governance, influencing both regulatory practices and the behavior of dominant tech firms.
