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European Union regulators have fined Apple and Meta, the parent company of Facebook, a total of €700 million for violating antitrust rules. However, the fines were kept relatively low in order to prevent further tensions with US President Donald Trump.
Apple was fined €500 million and has been instructed to revise its App Store rules within two months. This decision comes after an investigation into whether Apple’s regulations hindered app developers from directing consumers to offers outside of the App Store.
Meta, on the other hand, was fined €200 million and has been required to change its “pay or consent” model. This model forces users to either agree to data tracking or pay a subscription fee for an ad-free experience.
The fines imposed are significantly lower than the potential penalties under the Digital Markets Act, which could have reached billions of euros for both companies. This decision was made in an effort to enforce the DMA while avoiding a direct confrontation with the US.
The new European Commission, which began its term in December, is more focused on ensuring tech companies comply with regulations rather than imposing hefty fines, according to officials.
The recent fines mark a pause in Trump’s reciprocal tariff plan, as he seeks to negotiate with the EU amidst escalating tensions. European Commission President Ursula von der Leyen has warned of possible tariffs on US services exports, including those of Big Tech, in response to US tariffs.
The relationship between the EU and Trump has been strained, with the president criticizing EU fines as “overseas extortion” and a form of taxation.
Additionally, the European Commission announced the closure of two other investigations into Apple and Meta without further penalties. However, Apple’s contract terms will be further scrutinized, potentially leading to fines in the future. The commission found that Apple restricts third-party app stores on its iOS system and prohibits direct app downloads to iPhones from the web.
Both Apple and Meta have expressed their discontent with the fines. Apple plans to appeal, stating that the decisions put user privacy and security at risk and require them to provide technology for free. Meta believes the commission is unfairly targeting American businesses while allowing Chinese and European companies to operate under different standards.
While the fines imposed on Apple and Meta are relatively small, there is still concern about Trump’s reaction. The commission will reassess the companies’ compliance with regulations in two months, potentially leading to further penalties.
