The European Union has fined Apple and Meta nearly $800 million for violating the bloc’s tough new digital competition laws. Apple faces a €500 million ($570 million) penalty for restricting app developers from steering users to cheaper offers outside the App Store, while Meta is hit with a €200 million ($228 million) fine for its controversial 'pay or consent' data model on Facebook and Instagram. WATCH.
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00:00On 23rd April, the European Union, the EU's executive arm, announced its first major penalties
00:19under the New Digital Markets Act, or DMA. Apple was fined 500 million euros, roughly
00:25570 million dollars, and Meta, the parent company of Facebook and Instagram, was hit with a
00:33200 million euros fine, that is about 228 million dollars.
00:49Apple's penalty centers on what regulators called anti-steering practices. Under the
00:54DMA, Apple must let app developers inform users about cheaper or alternative offers outside
01:01the app store, without restrictions or extra fees. But the EU found Apple still make it
01:08hard for developers to steer customers to better deals elsewhere, limiting customer choice and
01:15competition.
01:16Meta's fine targets its controversial consent or pay model. Since late 2023, EU users of
01:29Facebook and Instagram had to either agree to share their personal data for targeted ads,
01:35or pay a subscription for an ad-free experience. The EU says this forced choice violates the Digital
01:42Markets Act, which requires platforms to offer a less intrusive, more privacy-friendly service,
01:49without making users pay extra.
01:56Both tech giants are now pushing back. Apple claims the EU is unfairly targeting American companies,
02:02and says the changes demanded could hurt user privacy and product security.
02:08Meta argues the EU is imposing rules that disadvantage US firms while letting Chinese
02:15and European rivals off the hook. These fines come as US-EU trade tensions are on the rise.
02:22President Trump has criticized what he calls overseas extortion of American tech companies,
02:28and has threatened and even imposed new tariffs on EU goods in response.
02:33The penalties, though large, are actually smaller than some past EU fines against big tech for
02:40antitrust violations. But they mark a new era of strict digital regulation, and could fuel further
02:47transatlantic disputes. Apple and Meta have 60 days to comply with the EU's orders, or face even steeper
02:56penalties. Both companies plan to appeal, but the message from Brussels is clear. Tech giants must play by
03:02Europe's rules or pay the price. White House have already called this a novel form of economic extortion,
03:09and that will not be tolerated by the United States. Trump earlier warned tariffs for sanctions on US
03:17companies. Will these fines change how Apple and Meta operate in Europe? Will they spark a broader tech
03:24trade war? And what does it all mean for your privacy and your wallet?