The European Commission said the Silicon Valley companies violated the Digital Markets Act, a law meant to crimp the power of the largest tech firms.
European Union regulators on Wednesday said Apple and Meta were the first companies to be penalized for violating a new law intended to increase competition in the digital economy, the latest in a string of regulatory setbacks for the tech giants.
Apple was fined 500 million euros ($570 million) and Meta was fined 200 million euros ($230 million) for breaking the law, the Digital Markets Act, which was adopted in 2022. The European law aims to keep big tech companies from abusing their position as digital gatekeepers that can unilaterally impose requirements on users and businesses.
Apple violated the Digital Markets Act by restricting how app developers could communicate with customers about sales and other offers, according to the European Commission, the executive branch of the 27-nation bloc. Meta broke the law by imposing a “consent or pay” system that forces users to either allow their personal data to be used to target advertisements, or pay a subscription fee for advertising-free versions of Facebook and Instagram.
Even as the United States and European Union tussle over trade, tariffs and the war in Ukraine, the penalties showed a consensus on both sides of the Atlantic over addressing the power of the world’s largest tech companies. The tech behemoths have amassed trillions of dollars in stock market value as owners of products and services that are essential for communication, commerce, information and other areas.
In the United States, Google suffered two major antitrust defeats over the past year for abusing its power in internet search and digital advertising. Meta is on trial in Washington over accusations that it squashed competition through acquisitions. Amazon and Apple also face U.S. antitrust lawsuits.
It is unclear how the Trump administration will react to the European Union rulings against Apple and Meta. In February, the White House released a memo saying it would consider retaliation if the European Union targeted American tech companies under the Digital Markets Act or the Digital Services Act, a law focused on curbing illicit online content and disinformation.