Brussels batters Apple and Meta with first DMA fines

The European Commission has fined Apple €500m (£429m) and Meta €200m (£171m) in the first ever monetary penalties issued for breaches of its Digital Markets Act, in what one Brussels chief has branded a “strong and clear message” to tech giants.

The Commission insists the two decisions come after extensive dialogue with both companies, allowing them to present in detail their views and arguments.

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.

However, the Commission found that Apple fails to comply with this obligation. Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store.

Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers. The company has failed to demonstrate that these restrictions are objectively necessary and proportionate.

As part of today’s decision, the Commission has ordered Apple to remove the technical and commercial restrictions on steering and to refrain from perpetuating the non-compliant conduct in the future, which includes adopting conduct with an equivalent object or effect.

The fine imposed on Apple takes into account the gravity and duration of the non-compliance.

Meanwhile, Meta has been whacked over its “consent or pay” advertising model, launched in November 2023. Under the scheme, EU users of Facebook and Instagram had a choice between consenting to personal data combination for personalised advertising or paying a monthly subscription for an ad-free service.

The Commission found that this model is not compliant with the DMA, as it did not give users the required specific choice to opt for a service that uses less of their personal data but is otherwise equivalent to the ‘personalised ads’ service.

Meta’s model also did not allow users to exercise their right to freely consent to the combination of their personal data.

In November 2024, after numerous exchanges with the Commission, Meta introduced another version of the free personalised ads model, offering a new option that allegedly uses less personal data to display advertisements.

The Commission is currently assessing this new option and continues its dialogue with Meta, requesting the company to provide evidence of the impact that this new ads model has in practice.

However, today’s decision relates to non-compliance during period from March 2024, when the DMA obligations became legally binding, and November 2024, when Meta’s new ads model was introduced.

The fine imposed on Meta also takes into account the gravity and duration of the non-compliance, while noting that today’s decisions taken against Apple and Meta are the first non-compliance decisions adopted under the DMA.

Apple and Meta are now required to comply with the Commission’s decisions within 60 days, otherwise they risk periodic penalty payments.

The Commission continues its engagement with Apple and Meta to ensure compliance with the Commission’s decisions and the DMA more generally.

EU executive vice-president for clean, just and competitive transition Teresa Ribera said: “Today’s decisions send a strong and clear message. The Digital Markets Act is a crucial instrument to unlock potential, choice and growth by ensuring digital players can operate in contestable and fair markets. It protects European consumers and levels the playing field.

“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.

“As a result, we have taken firm but balanced enforcement action against both companies, based on clear and predictable rules. All companies operating in the EU must follow our laws and respect European values.”