In a landmark move, the European Union (EU) has imposed hefty fines totaling €700 million (approximately Rs 6800 crore) on tech giants Apple and Meta for violating the Digital Markets Act (DMA), a 2022 legislation aimed at curbing Big Tech’s dominance. Apple faces a €500 million ($570 million) penalty for restricting app developers from promoting cheaper alternatives outside its App Store, while Meta was fined €200 million ($228 million) for its controversial “pay or consent” ad model, which critics argue coerces users into surrendering personal data.
The fines, announced on April 23, 2025, mark the first sanctions under the DMA, signaling the EU’s aggressive stance on enforcing digital competition rules. The European Commission, after a year-long investigation, found both companies guilty of anti-competitive practices that stifle smaller rivals and limit consumer choice. Apple’s restrictions were deemed to block developers from offering better deals, while Meta’s model was criticized for undermining user privacy.
Both companies have vowed to appeal, with Meta labeling the fines as an unfair attack on American businesses, claiming the EU favors Chinese and European firms. Apple echoed similar sentiments, arguing the penalties are disproportionate. The fines have sparked tensions, with the White House calling them “economic extortion,” hinting at potential U.S. retaliatory measures, including tariffs.
Despite the hefty sum, experts like Alexander Hurst from The Guardian argue the fines are a “slap on the wrist” compared to the companies’ global revenues, suggesting the EU may have softened its approach to avoid escalating trade disputes with the U.S. under President Donald Trump’s administration. The EU, however, defends the penalties as “proportionate,” emphasizing that enforcement is critical to fostering competition and protecting consumers.
The EU has given Apple and Meta 60 days to comply with DMA regulations or face further sanctions, putting pressure on the tech giants to overhaul their business practices. This development is a significant step in the EU’s ongoing battle to regulate Big Tech, with potential ripple effects on global digital markets.
As the tech world watches closely, these fines underscore the growing scrutiny on monopolistic practices and the EU’s commitment to leveling the playing field. Will Apple and Meta adapt, or will this spark a broader U.S.-EU trade conflict? Stay tuned for more updates.
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