The European Union imposed a $797 million fine on Apple and Meta for violations of the Digital Markets Act. Apple was fined $570 million and Meta $228 million. The fines stem from an investigation revealing that Meta failed to offer users less data-intensive versions of its platforms, while Apple violated a steering rule preventing app developers from informing customers about alternative purchasing options. Meta's chief global affairs officer criticized the EU's actions as harmful to successful American businesses, describing the penalties as an unfair impost on their business model.
Joel Kaplan, Meta's chief global affairs officer, criticized the EU's decision, accusing it of attempting to handicap successful American businesses. 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 European Commission found that, for a period of time last year, Meta had not given users the ability to use versions of its platforms that process less of their personal data without paying a fee.
The commission also found that Apple had broken the so-called steering rule in the DMA, which requires app developers to inform customers about alternatives outside the App Store without restrictions.
In November 2023, Meta adopted a consent or pay advertising model, which forced European users of Facebook and Instagram to either consent to personal data combination for personalized advertising or pay for ad-free versions.
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