In a historic enforcement move, the European Union has fined tech giants Apple and Meta a combined €700 million for violating the bloc’s newly enacted Digital Markets Act (DMA). The sweeping legislation, which came into force earlier this year, aims to rein in the market dominance of large digital platforms—commonly referred to as “gatekeepers”—and promote fair competition across the digital landscape.
Apple has been ordered to pay €500 million after EU regulators determined that the company unfairly restricted app developers from directing users to alternative payment options outside of its proprietary App Store ecosystem. Investigators concluded that this restriction prevented developers from offering potentially cheaper or more flexible purchasing choices to consumers, limiting transparency and competition.
Meta, the parent company of Facebook and Instagram, faces a €200 million penalty for its “pay or consent” model. This controversial approach offered European users a choice: agree to share personal data for targeted advertising or pay a fee to opt out of personalized ads. Regulators found this practice problematic, arguing that it undermined users’ freedom of consent and placed them under undue pressure to submit to data collection in order to access core services.
Both companies have strongly rejected the EU’s findings and announced plans to appeal. Apple claimed it has consistently worked to comply with European regulations and foster a competitive app marketplace, while Meta asserted that its model offers users clear and fair options for managing their data preferences.
The Digital Markets Act, a centerpiece of the EU’s digital strategy, was created to prevent abusive practices by dominant tech firms and ensure that smaller players and consumers are not unfairly disadvantaged. Under the legislation, companies designated as gatekeepers are subject to a host of new obligations, including prohibitions on self-preferencing, requirements to allow data portability, and mandates to permit business users to communicate with customers outside the platform.
The fines announced this week mark the first major enforcement action under the DMA and send a strong signal to the broader tech industry about the seriousness with which the EU intends to uphold its digital policy objectives.
This development represents a major milestone in the EU’s ongoing battle to establish stricter oversight over the digital economy. By targeting two of the world's most influential tech firms, regulators are demonstrating a readiness to challenge business models that have long been criticized for limiting user choice and competition.
While critics may argue that the DMA places an undue burden on U.S.-based technology companies, supporters of the legislation view it as a necessary step to create a fairer and more transparent digital market. The appeals filed by Apple and Meta are likely to initiate a prolonged legal process, during which the interpretation and durability of the DMA will be tested.
Regardless of the final outcome, this case sets a precedent and underscores the growing trend of regulatory scrutiny directed at Big Tech—not just in Europe, but globally. It also highlights the increasingly complex balancing act between fostering innovation, protecting user rights, and ensuring competitive fairness in the digital age.