EU Fines Apple and Meta Nearly $800 Million Under New Law

London, England — The European Union has fined tech giants Apple and Meta a total of €700 million ($797 million) as part of the first enforcement of its Digital Markets Act. This significant penalty comes as the EU faces criticism from the Trump administration, which claims the bloc is unfairly targeting American companies.

On Wednesday, the European Commission disclosed that it issued a €500 million ($570 million) fine to Apple and a €200 million ($228 million) fine to Meta, which owns Facebook. Joel Kaplan, Meta’s chief global affairs officer, criticized the fines, alleging that the EU’s actions aim to “handicap successful American businesses.” He described the situation as imposing a “multibillion-dollar tariff” on Meta and compelling the company to provide an inferior service.

The investigation found that last year, Meta failed to allow users the option of using ad-supported versions of its platforms without extensive personal data processing. In November 2023, the company had implemented a “consent or pay” model, forcing European users of Facebook and Instagram to either consent to sharing their personal data for targeted advertising or to pay for ad-free versions of the services.

Additionally, the European Commission determined that Apple had violated the DMA by hindering app developers from informing customers about cheaper alternatives to the App Store. This restriction prevented users from accessing better offers, which the commission deemed harmful to fair consumer choice.

An Apple representative criticized the fine as unfair targeting and insisted that the company has already invested significant resources to comply with EU regulations. They expressed their intention to appeal the decision, stating, “We have spent hundreds of thousands of engineering hours…despite countless meetings, the Commission continues to move the goal posts.”

The fines imposed reflect the severity of the violations and must be paid within 60 days to avoid further penalties. Under the Digital Markets Act, repeat offenders can face fines up to 20% of their annual global revenue, which could mean severe financial implications for both companies. Last year, Meta reported revenues of over $164 billion, while Apple earned $391 billion.

This ruling has intensified existing tensions between American tech firms and European regulators, especially with President Trump’s recent accusations that the EU is out to harm U.S. businesses. Earlier this month, Trump announced a 20% tariff on imported goods from the EU, reflecting the heightened geopolitical discord regarding trade and technology.