Thursday, April 24, 2025
Thursday April 24, 2025
Thursday April 24, 2025

EU fines Apple, Meta €700m under new tech law, U.S. Slams ‘unfair targeting’

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Apple and Meta lash out after EU fines them €700m under new digital markets act crackdown

Tech titans Apple and Meta have erupted in fury after being slapped with a combined €700 million fine by the European Union under its sweeping new tech regulation, the Digital Markets Act (DMA).

Apple was fined €500 million (£428 million) over its App Store practices, while Meta faces a €200 million (£171 million) penalty for limiting users’ data privacy choices. The EU declared both firms failed to comply with rules aimed at levelling the playing field for developers and protecting users’ rights in the digital economy.

“We have a duty to protect the rights of citizens and innovative businesses in Europe,” said Commissioner Henna Virkkunen. She added that both Apple and Meta were enforcing policies that “reinforced dependence” on their platforms.

The fines come amid rising tensions between Brussels and Washington. Just weeks ago, the Trump administration hit EU imports with a 10% tariff, accusing Europe of unfair trade practices. While the EU insists the tech crackdown is unrelated to global trade disputes, the diplomatic temperature is climbing.

Apple came out swinging, accusing the Commission of unfairly targeting the company and demanding it “give away our technology for free”. The iPhone maker claimed the EU’s ruling would degrade user privacy and product quality, alleging that Brussels had “moved the goalposts” mid-negotiation.

Meta was equally scathing. Its so-called “consent or pay” model—requiring users to either pay a subscription or consent to personal data usage—was ruled in violation of DMA principles. Brussels said the model did not allow users to “freely consent” to data sharing, even after Meta rolled out a limited privacy-focused ad option.

“The Commission is forcing us to change our business model. This effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service,” said the company in a sharply worded statement. It also suggested that Chinese and European tech firms were being held to looser standards.

The Digital Markets Act, which came into force last year, is part of a broader EU strategy to rein in what it sees as monopolistic practices by so-called “gatekeeper” platforms. The Commission’s latest moves show it is willing to enforce those rules aggressively, despite protests from Silicon Valley and Washington alike.

“These aren’t just symbolic actions,” said Teresa Ribera, another EU commissioner. “Apple and Meta fell short of compliance with the DMA, and we’ve acted accordingly.”

Epic Games, the gaming giant behind Fortnite, welcomed the news. The firm has long battled Apple over App Store restrictions and hailed the ruling as a victory for developers globally. “Great news for app developers worldwide,” tweeted CEO Tim Sweeney, urging U.S. lawmakers to adopt similar laws.

Legal experts say the real conflict lies in who gets to dictate the rules for global tech giants. “It’s not so much about competition law itself,” said Prof. Anne Witt of EDHEC Business School, “but about European institutions asserting their authority over American firms operating in Europe.”

The Information Technology and Innovation Foundation, a U.S.-based think tank partly funded by Apple and Meta, warned the ruling would further sour transatlantic relations. “The Commission’s actions today will not be well received by the Trump administration,” it said.

Meanwhile, the UK is pursuing its own crackdown. Under new legislation passed last year, British regulators are probing tech monopolies—including Apple and Google—for potential abuse of market power.

Both Apple and Meta have 60 days to comply or risk further financial penalties. But with billions at stake and accusations flying, this is likely just the next act in an increasingly bitter global tech showdown.

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