Apple and Meta Fined Over $1 Billion in EU in Tech Crackdown

The European Commission has fined Apple and Meta for breaking rules under the Digital Markets Act (DMA), marking the first official penalties since the legislation came into force.

Apple was fined a whopping €500 million ($788 million CAD) for restricting app developers from steering users to cheaper offers outside the App Store, while Meta was fined €200 million ($315 million CAD) over its “consent or pay” ads model that didn’t offer a true alternative for users who wanted less tracking. That’s just over $1.1 billion in fines the EU wants from both Apple and Meta.

According to the Commission, Apple failed to comply with a core DMA requirement that lets app developers promote and link to alternative purchase options. Instead, developers faced technical and commercial roadblocks, which also limited consumers from seeing better-priced options. Apple has now been ordered to lift these restrictions and avoid repeating similar conduct.

Meanwhile, Meta was penalized for how it handled user consent. Its “consent or pay” model — launched across Facebook and Instagram in Europe — gave users a binary choice: agree to data tracking or pay a monthly subscription. The Commission found this didn’t meet DMA standards, which require a meaningful, less-personalized alternative without forcing payment. Although Meta introduced a revised model in November 2024, the fine addresses the earlier period from March to November 2024.

“These decisions are the first of their kind under the DMA,” said the Commission, noting the gravity and duration of each company’s non-compliance. Both Apple and Meta have 60 days to comply or face additional penalties.

Separately, the Commission has removed Facebook Marketplace from the list of services regulated under the DMA. After a review, the EU determined Marketplace no longer qualifies as a major business gateway, falling below the required threshold of 10,000 business users.

The Commission says it will continue to work with both companies to ensure full compliance with the DMA going forward.

Apple said it would appeal the EU’s decision in a statement to CNBC.

“Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free,” Apple said.

“We have spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law, none of which our users have asked for. Despite countless meetings, the Commission continues to move the goal posts every step of the way,” said Apple.

Joel Kaplan, Meta’s chief global affairs officer, slammed the EU in a statement to CNBC, saying it was “attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards.”

“This isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service. And by unfairly restricting personalized advertising the European Commission is also hurting European businesses and economies,” said Kaplan.

What do you think about the EU’s decision here? The only winners out of this will be the lawyers again…