The European Union imposed major fines on Apple and Meta Platforms as part of its ongoing effort to control U.S. technology corporations under the Digital Markets Act from 2022. The App Store rules from Apple received a €500 million ($570 million) penalty because the company restricted developers’ access to alternative distribution channels which impaired their competitive abilities. Meta Platforms received a €200 million fine because its “consent or pay” advertising system on Facebook and Instagram violated the same law by making users pay to avoid ads. The fines amount to substantial amounts but remain below the Digital Markets Act’s maximum penalty which would have reached 10% of global annual revenue thus equating to $391 billion for Apple and $165 billion for Meta in 2024.
Both companies experienced share increases in premarket trading because of positive U.S. stock-market futures despite the issued fines. The European Commission continues to evaluate the newly implemented Meta advertising system from November 2024 which operates with reduced personal data usage. The regulatory body works with Meta to measure how this model affects actual users while asking for proof of its operational success.
The Trump administration and other critics view the EU’s strong tech regulations as trade barriers that go beyond traditional tariffs. Apple has decided to file an appeal after receiving a €1.8 billion fine for blocking music streaming developers from its App Store. Apple’s statement to the European Commission claimed that their decisions harmed user privacy and security and required the company to share its technology without payment because their customers did not request these changes and the Commission continued to change its requirements.
Meta signaled that it plans to challenge the fine. Joel Kaplan from Meta described the fine as an effective multi-billion-dollar tariff which requires them to implement a degraded service model. The Commission’s restriction on personalized advertising damages European businesses and economies according to Meta’s Chief Global Affairs Officer Joel Kaplan.
The EU’s attempts to limit U.S. technology firms continue but these actions produce conflicts with U.S. government agencies as well as strong opposition from companies fighting against these penalties. The business strategies and transatlantic trade dynamics of Apple and Meta face ongoing evaluation as these companies deal with regulatory challenges.
