The European Union sent shockwaves through the tech world on Wednesday, slapping Apple and Meta with a combined €700 million in fines—the first major enforcement action under its landmark Digital Markets Act (DMA).
The move, while cheered by consumer rights advocates in Europe, risks deepening tensions with U.S. President Donald Trump, whose administration has long accused the EU of unfairly targeting American tech giants.
Apple took the biggest hit, receiving a €500 million ($570 million) penalty after the European Commission found it had illegally restricted app developers from informing users about cheaper alternatives outside the App Store.
According to EU regulators, this behavior hindered fair competition and locked consumers into Apple’s payment ecosystem.
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Meta, the parent company of Facebook and Instagram, was fined €200 million over its controversial “pay or consent” model, which regulators say violates EU privacy standards. Introduced in late 2023, the model requires users to either pay to avoid data tracking or agree to extensive personal data collection to continue using the platforms for free.
What makes this moment particularly significant is that these are the first major penalties under the DMA—a sweeping law that took effect in 2024 to curb the dominance of Big Tech firms and foster digital competition across the European Union.
The fines could increase if Apple and Meta don’t comply with the regulations within 60 days, with the EU warning of additional “periodic penalty payments.”
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Antitrust commissioner Teresa Ribera called the move “firm but balanced,” adding that the enforcement actions should serve as a “strong and clear message” to global tech companies that the rules in Europe have changed.
The fines arrive at a particularly sensitive time in EU-U.S. relations. President Trump, who recently returned to office, has sharply criticized the EU’s digital laws, labeling them “non-tariff barriers” designed to disadvantage American companies.
His administration has been vocal about defending U.S. tech interests, and these latest penalties could complicate ongoing trade negotiations aimed at lifting Trump-era tariffs on European steel, aluminum, and auto imports.
Trump allies within the tech sector were quick to lash out. Joel Kaplan, Meta’s Chief Global Affairs Officer and a prominent Republican figure, condemned the EU’s decision, saying it imposes a “multi-billion-dollar tariff on Meta” and forces the company to offer “an inferior service.”
Apple also fired back, stating it would appeal the fine. “Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for privacy, bad for security, and force us to give away our technology for free,” the company said in a strongly worded response.
Interestingly, the fines are smaller than previous EU penalties for similar violations. Just last year, Apple was hit with a €1.8 billion fine under different rules for comparable App Store conduct. Analysts see the latest action as a shift toward more methodical—but still meaningful—enforcement under the DMA.
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Still, the EU did offer a rare concession to Apple by closing an investigation into user choice obligations after the company made it easier for users to select default browsers and remove pre-installed apps like Safari.
Meta, meanwhile, faces continued scrutiny. The commission ruled that the company failed to provide a genuinely “equivalent” experience for users who opted out of data tracking—a core requirement under EU privacy law. A revised version of Meta’s consent model is under review by the commission.
The fines may mark only the beginning of a broader crackdown under Europe’s new digital rulebook. Regulators have signaled they’re ready to go toe-to-toe with even the most powerful tech firms to reshape the digital economy around fairness, transparency, and consumer choice.
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