EU slaps €700m fine on Apple, Meta over App Store restrictions and data consent violations

The European Union has imposed a total of €700 million in fines on tech giants Apple and Meta, marking the bloc’s first enforcement action under its newly introduced Digital Markets Act (DMA), a law designed to rein in the dominance of large tech firms.

Apple faces a €500 million penalty for restricting access to alternative app marketplaces through its App Store, a move the EU claims stifled competition and innovation. Meta, on the other hand, was fined €200 million for failing to offer users a meaningful choice regarding how their data is collected and used across its platforms, Facebook and Instagram.

“We are committed to defending the rights of European citizens and ensuring a level playing field for businesses,” stated Commissioner Henna Virkkunen.

Both companies pushed back strongly. Meta accused the EU of unfairly targeting successful American firms, while Apple said it was being compelled to compromise its proprietary technology and user security.

Although the financial penalties are modest in comparison to previous EU fines, the decision is likely to escalate tensions with Washington, especially as former President Donald Trump’s administration had already criticized European regulation of American tech companies. The EU, however, maintains the penalties are about upholding consumer protection and competition laws, not geopolitics. “This is about rule enforcement, not trade policy,” said Commission spokesperson Arianna Podesta.

The investigations into both companies were launched last year under the DMA. In Apple’s case, the Commission concluded that its App Store practices prevented developers and users from accessing or offering alternative app distribution options. Meta’s case centered on its “consent or pay” model, which forced users to either allow data sharing across its platforms or pay a subscription—an approach the EU said did not constitute valid user consent.

The Commission also criticized Apple and Meta for adopting measures that deepened user and developer reliance on their ecosystems. “These firms have not met their DMA obligations. We’ve responded with proportionate yet decisive action,” said Commissioner Teresa Ribera.

Apple claimed that the decision undermines user privacy and forces the company to compromise on security. Meta described the ruling as effectively imposing an unfair economic burden, alleging that European and Chinese companies are not held to the same standards.

The ruling has been met with applause from some quarters. Epic Games, which has a long-standing dispute with Apple over app store practices, hailed the decision as a victory for developers. CEO Tim Sweeney urged U.S. lawmakers to pass similar laws to promote fairness in digital markets.

Meanwhile, critics of the EU’s approach argue the fines reflect an effort to extract revenue from American firms. The Information Technology and Innovation Foundation warned that the decision could sour transatlantic relations further, especially with increasing scrutiny from the U.S. over foreign regulation of its major corporations.

The UK is also tightening its grip on dominant tech platforms, investigating Apple, Google, and others under its own digital competition regime. With similar actions expected from regulators worldwide, global tech firms may soon face a shifting regulatory environment that challenges long-standing business models.

Both Apple and Meta have 60 days to comply with the EU’s orders—or face further penalties.