Apple and Meta heavily fined by the European Commission

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Apple and Meta heavily fined by the European Commission

After postponing these sanctions due to the US-led trade war, the European Commission imposed heavy fines on Meta and Apple. Apple was fined 500 million EUR and Meta 200 million EUR.

700 million EUR in fines

Meta and Apple were not spared. The European Commission fined the two major US companies on Wednesday, April 23. It accuses them of failing to comply with the Digital Markets Act (DMA). This is a first since the introduction of this regulation, which aims to curb abuses of dominant positions by Gafam.

Apple was fined 500 million EUR and Meta 200 million EUR.

Restrictions on alternative app stores for Apple

In essence, Apple is accused of harming competition by imposing restrictions on alternative app stores. Indeed, the company prohibits app developers from directing users to less expensive offers outside its App Store.

Additional costs blamed on Meta

For its part, Meta is accused of restricting users’ ability to opt out of sharing their personal information, unless they pay significant fees. Since November 2023, the California-based group has required a subscription (€5.99 per month on PC and €7.99 on mobile) for users wishing to avoid being tracked on Facebook and Instagram.

Possible Escalation of Trade Disputes

The European Commission’s announcement comes as the conclusions of its investigation, launched in March 2024, were scheduled for March. However, Brussels had opted to postpone these sanctions due to the tense economic climate—in other words, the trade war launched by Donald Trump. However, these decisions could lead to a further intensification of trade disputes between the European Union and the United States.

Unlike usual practice, the announcements were made via a simple press release, without a press conference organized by the European executive. In a statement, Competition Commissioner Teresa Ribera stated that “today’s decisions send a powerful and explicit message, characterizing the sanctions as firm and balanced.”

Reactions and perspectives

Apple stated that it feels “unfairly targeted in a series of decisions that are harmful to the privacy and security of our users, harmful to our products, and that force us to provide our technology free of charge.” Claiming to have made multiple adjustments to comply with the DMA, the company immediately announced its intention to appeal while continuing to engage with regulators.

Meta was even more scathing. Joel Kaplan, a former Republican Party official and close aide to Donald Trump, declared: “The European Commission is seeking to hamper thriving American businesses while allowing Chinese and European companies to operate under separate standards.”

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