Digital Markets Act (DMA) | EU imposes millions in fines on Apple and Meta for violations of digital law

Published on: April 23, 2025 / Updated on: April 23, 2025 – Author: Konrad Wolfenstein

Digital Markets Act (DMA) | EU imposes millions in fines on Apple and Meta for violations of digital law – Image: Xpert.Digital

€700 million fine: DMA puts Apple and Meta under pressure

Competition vs. market power: Apple and Meta punished for DMA violations

On April 23, 2025, the European Commission imposed its first fines under the Digital Markets Act (DMA). US tech giants Apple and Meta were ordered to pay a combined total of €700 million, with Apple fined €500 million and Meta €200 million. The Commission found that the companies had violated European digital law, which aims to promote competition in the digital market and limit the market power of large technology companies.

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The imposed penalties and their justification

The European Commission has fined Apple €500 million (approximately $570 million). The company is accused of preventing app developers from making offers outside the App Store available to consumers. Specifically, Apple is alleged to be preventing developers from directly informing users about cheaper alternatives outside its ecosystem. The Commission argues that this prevents users from fully benefiting from alternative and potentially cheaper offers.

Meta must pay a fine of €200 million (approximately US$230 million). The fine relates to the company's so-called "pay-or-consent" model. Under this model, Facebook and Instagram users must choose between a monthly fee for an ad-free version and a free version with personalized advertising. According to the European Commission, this model does not offer users sufficient options to choose a service that uses less personal data. The fine covers the period of the alleged infringement, between March 2024 and November 2024.

The Digital Markets Act as the legal basis

The fines were imposed under the Digital Markets Act (DMA), a European Union law designed to make the digital economy fairer and more competitive overall. The DMA, which came into force at the beginning of March 2024, establishes new rules for so-called “gatekeepers.” Gatekeepers are defined as companies with such a strong economic position that they have a significant impact on the European single market, operate in multiple countries, have a large user base, and have a long-term presence in the market.

The law aims to limit the market power of large technology companies by imposing certain prohibitions and requirements on them. For example, tech companies must allow app developers to direct consumers to offers outside the app store free of charge. Furthermore, the companies must obtain their users' consent if they want to share personal data across different platform services within the group.

Violations of the DMA can result in fines of up to ten percent of global annual revenue; for repeat offenders, this rate can rise to 20 percent. Compared to these figures, the fines imposed now are relatively moderate. Apple's annual revenue in 2024 was approximately $391 billion, while Meta's was $164.5 billion.

Reactions from the affected companies

Apple has already announced its intention to challenge the penalty in court. The company considers the commission's actions unfair and argues that it is being forced to give away technology for free. "We have invested hundreds of thousands of development hours and made dozens of changes to comply with this law," Apple stated. Despite numerous meetings, the commission keeps postponing its targets.

The situation at Meta is somewhat different. The company apparently introduced a different version of its free personalized advertising model in November 2024. This new version reportedly includes an option that uses less personal data. The Commission is currently examining this new option, while the imposed penalty relates to the period of the alleged infringement between March and November 2024.

Both Apple and Meta have 60 days to comply with the decisions or risk further penalties.

EU sanctions: Fuel for transatlantic tensions?

The imposed penalties could have repercussions for the current tensions between the US and the EU. Andrew Ferguson, Republican chairman of the US Federal Trade Commission (FTC), recently stated at an event that the Digital Markets Act appeared to be a form of taxation for American companies.

The European Commission's decision comes at a delicate time in transatlantic relations. According to reports, the announcement of the sanctions was postponed several times, partly due to concerns about retaliatory measures by the US government under Donald Trump and the risk of further escalation in the intensifying trade war.

Internally, the EU Commission is said to have discussed whether the right time to announce the penalties should be before or after Trump's inauguration, after the first tariffs were imposed, or even after his "Liberation Day." However, the Brussels-based authority consistently emphasizes that proceedings against American tech companies are not related to the current tensions with Washington over the tariff dispute.

Importance for the digital market and consumers

The decision marks a significant milestone in European digital policy. It is the first time the EU Commission has imposed penalties under the Digital Marketing Act (DMA). The measures are intended to foster greater competition in digital services and offer users more choice.

The unique aspect of digital platforms is that they sometimes constitute a market themselves. For example, if the most popular search engine consistently displays its own company's products at the top, all other providers have less of a chance. With messaging services, the so-called network effect means that switching to alternative providers is only practical if many other users do the same.

The DMA is intended to address these problems and ensure that a dominant market position does not disadvantage other providers. The penalties now imposed send a clear signal to the tech industry that the EU is determined to enforce its new digital rules.

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Comparison with previous EU measures against tech companies

The current fines are the latest in a series of measures the EU has imposed on US tech companies in recent years. Just recently, the European Commission fined Apple €1.84 billion for antitrust violations. This was the largest fine the EU had ever imposed on a US technology company.

The penalties imposed under the DMA are comparatively more moderate, possibly due to geopolitical tensions. According to some reports, the EU deliberately refrained from imposing the maximum possible fines on Apple and Meta to avoid escalating the trade dispute with Donald Trump.

Furthermore, the DMA's rules are still relatively new and could be challenged in court. The EU Commission is trying to enforce the DMA rules through cooperation with tech companies, rather than relying solely on penalties.

Digital market shift: How Apple and Meta must react

The fines imposed on Apple and Meta could have far-reaching consequences for the companies involved and the digital market as a whole. Both companies must now decide whether to adapt their business models in Europe or take legal action against the decision.

For Apple, this concerns key aspects of its App Store business model, while Meta needs to rethink its data usage and advertising model. The European Commission has already announced that it will review the changes Meta introduced in November 2024.

For consumers in Europe, these decisions could lead to greater choice and more affordable offers in the long run. App developers could benefit from lower fees and greater flexibility, while social media users might gain more control over their personal data.

However, the enforcement of the DMA is only the beginning of a longer process. It is expected that the companies concerned will gradually adapt their practices and that the EU Commission will continue to keep a close eye on compliance with the new rules.

Digital Markets Act: Europe sets clear limits for tech giants

The imposition of the first fines under the Digital Markets Act marks a turning point in the regulation of digital markets in Europe. With fines totaling €700 million against Apple and Meta, the European Commission is sending a clear signal that it intends to resolutely enforce the new rules for large technology companies.

The decision comes at a time of increasing geopolitical tensions between the EU and the US and could exacerbate them further. At the same time, it is an important step towards greater competition and fairness in digital markets, which could ultimately benefit consumers and smaller businesses.

Tech companies now face the challenge of adapting their business models to the new European rules or engaging in lengthy legal battles. Whichever option they choose, the digital market in Europe will continue to evolve, and the DMA will play a central role in this transformation.

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