Apple And Meta Fined Nearly $800 Million For Violating European Union's Digital Markets Act

The European Union imposed a total of $800 million in fines on Apple, Inc. AAPL and Meta Platforms, Inc. META on Wednesday in the first enforcement actions under the bloc's Digital Markets Act. 

The Details: Apple was fined approximately $570 million for restricting app developers from informing users about alternative sales or promotions outside the App Store and for limiting access to competing app stores on Apple devices. 

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Meta was penalized approximately $230 million for enforcing a “consent or pay” model on Facebook and Instagram which requires users to either agree to the use of their personal data for targeted advertising or pay for ad-free versions. 

Background: The Digital Markets Act targets "gatekeepers" in the digital economy, requiring them to allow more competition and provide users and businesses with more choices. Violations can result in fines of up to 10% of a company's global revenue, with even higher penalties for repeat offenses. 

The fines imposed on Meta and Apple are less than the maximum possible under the DMA, which could have reached into the billions for each company. 

In late March, the Financial Times reported that the EU was planning to enforce "minimal" fines on Apple and Meta in order to avoid escalating tensions between its member states and the U.S. The Trump administration released a memo in February stating it would consider retaliation if American tech companies were targeted under the Digital Markets Act or the Digital Services Act. 

What's Next: Both Apple and Meta have 60 days to comply with the EU's rulings and adjust their business practices or face additional periodic penalty payments. 

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