The Digital Markets Act (DMA) came into effect two years ago, but no companies were sanctioned under the law until now. The European Union has slapped a hefty fine on Apple and Meta for violating the DMA.

The EU accused Apple of restricting alternative app marketplaces on its iOS platform, essentially reinforcing the dependency of both developers and consumers on the Apple Store. The Commission demands that Apple allow third-party app stores and supports sideloading applications, something the company staunchly opposes. Notably, regulators are unhappy with Apple's Core Technology Fee. Apple has been fined €500 million for breaching the law. The company criticized the fine, arguing that these demands amount to a requirement to "give away our technology for free," even as it has made some strides in improving user flexibility around default settings.

Meta incurred a fine of €200 million. The EU alleges that Meta's "consent or pay" model violates DMA rules by failing to obtain genuine consent from users for data merging. In this controversial setup, users are left with the option to either allow data collection, or purchase a subscription for services like Facebook and Instagram. Meta has criticized the EU's approach, claiming it is stifling successful American businesses and effectively imposing a multibillion-dollar tariff that leads to an "inferior service."

Both Apple and Meta have 60 days to comply with the DMA's regulations or risk facing additional sanctions. Reuters reports that both companies aim to challenge the fine.

As tensions mount, the fines could exacerbate ongoing trade disputes between Europe and the United States, which already has imposed tariffs on EU imports citing unfair tech regulations. The White House has criticized the EU for the fines levied against Apple and Meta, labeling them as “extortion.” With these escalations, the relationship between these two economic powerhouses is likely to remain fraught.

Source: Techradar, Reuters.