EU hits Apple, Meta with $798 million fines over violations

The European Union has imposed a USD 798 million fine on Apple and Meta, marking the first penalties under new legislation aimed at curbing the power of major tech companies.

Apple has been fined USD 570 million over its App Store practices, while Meta faces a USD 228 million fine for mishandling user data.

“We have a duty to protect the rights of citizens and innovative businesses in Europe,” stated Henna Virkkunen, the European Commissioner responsible for the decision.

The two tech giants have responded strongly, with Meta accusing the EU of attempting to hinder successful American businesses, while Apple labeled the actions as “unfair” and complained about being forced to “give away our technology for free.”

Though the fines are smaller compared to previous EU penalties, they come amid growing economic tensions between the EU and the US, particularly after US President Donald Trump imposed a 10 percent tariff on European imports. Trump had previously accused Europe of “taking advantage” of the US, and the fines could stir further resentment.

However, EU spokesperson Arianna Podesta clarified that the fines are unrelated to trade issues. "This is about enforcement, it's not about trade negotiations," she said in a statement.

The fines are the result of investigations started by the European Commission under the Digital Markets Act (DMA), a law introduced to ensure fairness in the tech sector.

Apple was investigated over its App Store, with the Commission arguing that the company should allow users and developers to have more freedom in accessing alternative app marketplaces.

Meta, on the other hand, was fined for introducing a “consent or pay” model on Facebook and Instagram, which forced users to choose between allowing cookies to track their data or paying a subscription fee. The EU argued that this model did not provide users with real choice regarding the use of their personal data.

Both companies have 60 days to comply with the ruling or face additional fines. EU Commissioner Teresa Ribera emphasized that the fines were based on the severity and duration of the non-compliance, stressing that the EU’s actions were designed to promote fairness in business operations.

Apple has strongly criticized the ruling, claiming it would harm user privacy and security while unfairly benefiting other tech companies. The company also accused the Commission of changing the rules during their discussions. Meta voiced similar concerns, arguing that the ruling would create an uneven playing field by allowing Chinese and European companies to operate under different standards than US firms.

“This isn't just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta,” the company said in a statement.

While the fines represent only a fraction of the companies’ global revenues, they are significant given the broader global economic context. Professor Anne Witt from EDHEC Business School noted that these decisions reaffirm the European Commission’s firm stance on regulating tech companies, adding that the issue is not about antitrust principles but rather European institutions asserting their authority over US companies.