NIX Solutions: Apple, Meta fined under EU’s DMA

Apple and Meta have become the first companies fined for violating the European Union’s (EU) Digital Markets Act (DMA). Apple has been ordered to pay €500 million for restrictions on the App Store, while Meta has received a €200 million fine for its unlawful advertising model on Facebook and Instagram. Both companies must resolve the violations within 60 days to avoid further penalties.

Apple was fined for its practice of limiting developer freedom on the App Store. The European Commission found that Apple prohibited developers from adding links to external sites that offered alternative payment and subscription options. These restrictions violated the DMA, which aims to preserve consumer choice in the European market. The amount of the fine reflected both the seriousness and duration of the breach. Apple has been ordered to remove these restrictions and allow the promotion of third-party payment options.

Meta was penalized for its “pay or opt-in” model, which forces Facebook and Instagram users in the EU to either pay to opt out of advertising or consent to their data being processed. Although Meta offered a version with less personalized ads, the Commission deemed this approach insufficient and a violation of users’ rights. Meta responded that the demands exceeded the scope of the law. Yet we’ll keep you updated as more integrations and regulatory actions become available.

Companies Push Back on Regulatory Measures

Apple stated that complying with the DMA required hundreds of thousands of engineering hours and involved implementing dozens of updates not requested by users. A company representative said Apple is being forced to share its proprietary technology for free, which they claim compromises user privacy and product quality. Apple has labeled the regulatory approach as unfair and plans to appeal the decision.

Meta, meanwhile, criticized the ruling, claiming that it effectively imposes a tariff that drastically increases its operating costs and forces changes to its business model. Joel Kaplan, Meta’s chief lobbyist, argued that the decision harms not only Meta but also European businesses that rely on personalized advertising. He also pointed out that American companies face stricter standards than European or Chinese firms.

Ongoing Investigations and Past Penalties

The investigation into Apple and Meta began in March 2024, and similar inquiries were launched into Alphabet, Google’s parent company, reminds NIX Solutions. Google is suspected of favoring its own services in search results and using unfair practices on the Google Play store—issues that the Commission believes hinder competition and limit third-party access to consumers.

These are not the first antitrust actions by the EU against these firms. In 2023, Apple was fined €1.84 billion over a case initiated by Spotify before the DMA took effect. Meta was fined €797.7 million last November for integrating Facebook with Marketplace, and €1.2 billion for transferring personal data of EU citizens to the US—violations of data protection laws.