EU Fines Apple and Meta for Breaking Digital Rules

The European Union has issued its first major penalties under the Digital Markets Act (DMA), fining Apple €500 million (£429 million) and Meta €200 million (£172 million) for breaking new digital rules.

Apple received the larger fine because it doesn't allow app developers to tell users about cheaper options outside its App Store. The EU Commission found that Apple's restrictions prevent app developers from fully benefiting from alternative sales channels and stop consumers from finding better deals.

"Under the DMA, app developers distributing their apps via Apple's App Store should be able to inform customers, free of charge, of alternative offers outside the App Store, steer them to those offers and allow them to make purchases," explained the European Commission in its announcement.

This issue has been at the center of a years-long battle between Apple and Epic Games, maker of the popular game Fortnite. Epic Games was kicked off the App Store after it tried to offer players cheaper direct payment options inside Fortnite, bypassing Apple's 30% commission.

Following the EU's decision, Epic Games quickly responded with strong criticism of Apple's practices. "Apple is breaking the law by imposing illegal fees, scare screens, and restrictions on purchases made outside the App Store," the company stated. Epic demanded that Apple allow App Store apps to direct customers to third-party stores without charging fees or displaying warning screens.

In addition to the fine, Apple must remove its restrictions within 60 days or face additional penalties. The EU Commission has also issued preliminary findings challenging Apple's controversial Core Technology Fee, which charges major developers who publish on alternative iPhone app stores in regions where Apple must allow them.

Apple has strongly disagreed with the decision and plans to appeal. In a statement to Eurogamer, an Apple spokesperson said the company has "spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law," arguing that the Commission "continues to move the goal posts every step of the way."

Meta's fine relates to its "pay or consent" advertising model, which requires EU users to pay for ad-free versions of Facebook and Instagram. The Commission determined that this approach violates the DMA's rules.

According to EU Competition Commissioner Teresa Ribera, "Apple and Meta have fallen short of compliance with the DMA by implementing measures that reinforce the dependence of business users and consumers on their platforms."

Meta's Chief Global Affairs Officer Joel Kaplan criticized the decision, claiming it amounts to a "multi-billion-dollar tariff" that would harm European businesses and economies. He suggested the European Commission is "attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards."

These penalties come amid rising tensions between the EU and the United States over digital regulation. Earlier this year, the Trump administration suggested it might take retaliatory measures against the EU for actions against U.S. tech companies. However, European Commission President Ursula von der Leyen has made it clear that the bloc will continue enforcing its digital rules regardless of this pressure.

The DMA, which took effect in 2024, establishes new rules for how tech companies must operate in the European market. While these first fines are significant, they fall short of previous antitrust penalties issued by the EU, including a €1.8 billion fine to Apple last year for abusing its position in music streaming app distribution.