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Apple and Meta fined upto $800 million for breaching Digital Markets Act

Massive fines!

Story Highlights
  • Apple and Meta were fined a combined $800 million for breaking the EU's Digital Markets Act rules.
  • While Apple breached its anti-steering obligation, Meta's model breached DMA obligation.
  • Both companies must fix their practices within 60 days or face additional fines from the European Commission.

The European Commission has announced fines for both Apple and Meta for not following the rules set by the Digital Markets Act (DMA). The fines total up to $800 million (€700 million), with Apple must now pay $570 million (€500 million), and Meta has been fined $230 million (€200 million).

Apple is accused of blocking developers from steering users to cheaper payment options outside the App Store

The DMA came into effect in 2024 and is meant to stop big tech companies from acting like gatekeepers. One key rule is that app developers must be allowed to tell users about cheaper deals or payment options outside of big app stores like Apple’s, without being blocked or charged extra.

However, Apple supposedly continued to limit this. Developers couldn’t easily guide users to their websites, and Apple even placed warning screens that made users worry about buying from elsewhere. The Commission said this was not allowed and that Apple must change how it works.

Back in November last year, reports hinted that Apple could be the first tech giant to face a major fine under the EU’s new Digital Markets Act.

At the same time, Meta was punished for its “Consent or Pay” model. The company allowed users to either allow personal data tracking for ads or pay to avoid ads on Facebook and Instagram. The EU mentioned in the announcement that this didn’t offer users a real choice.

Following the announcement, Epic Games has responded by accusing Apple of illegal fees, scare screens, and restrictions on third-party stores, calling it “malicious compliance.” Epic is also named Google in the post, urging regulators to act against it.

As of now, Apple and Meta must follow the European Commission’s orders within 60 days. If they don’t, Apple and Meta could face extra fines and $800 million. The Commission is still working with both companies to ensure they follow the rules of the Digital Markets Act.

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