EU Hits Meta And Apple With €700m Fine

The EU is Doing What the U.S. Won’t

The European Commission—normally about as exciting as a Brussels sprouts milkshake—has suddenly morphed into a digital-era Wyatt Earp and issued its first fines under the Digital Markets Act (DMA) against Apple and Meta. It’s a crucial first step toward reining in the unchecked power of Big Tech. By penalising Apple €500 million for anti-competitive app store practices and Meta €200 million for its coercive "pay or consent" advertising model, the EU has sent a clear message: dominant platforms must be transparent or face consequences.

What is the EU Digital Markets Act?

The Digital Markets Act (DMA), which took effect in 2024, is the European Union’s latest attempt to rein in the tech giants that have been running wild across the digital landscape. Forget about the days when your access to a platform felt more like a monopoly than a marketplace. The DMA insists that these gatekeepers open up their digital gates so smaller businesses can not only enter but also have a fighting chance. The EU is on a mission to ensure that consumers have options—real choices, not just a selection of whatever the gatekeepers want us to see.

One of the big asks from the DMA is that tech gatekeepers share the inner workings of their algorithms—because let’s face it, how many times have you wondered just how your social media feed ended up showing you cat videos at 2 AM? The DMA aims to shed some light on this digital black box and how it manipulates our choices or lack of. The European Commission is responsible for monitoring DMA compliance and has the authority to impose hefty fines on companies that violate the rules outlined in the DMA. The timing of these fines might appear a bit off because it looks like the EU is retaliating against Trump’s tariffs.

Apple, the world’s first trillion-dollar company, got hit with a €500 million scolding for running its App Store like a mob-protected racket. Pay up—preferably in unmarked iTunes gift cards. Apple’s €500 million fine stems from its failure to allow real competition in its App Store, forcing developers to pay exorbitant commissions and limiting alternative distribution methods.

This Apple fine may seem modest compared to previous penalties, such as Apple’s €1.8 billion music streaming fine, but it marks the first real test of the DMA’s enforcement power. The Commission has also demanded corrective actions, including Apple opening its ecosystem by late June—a move that could finally break its stranglehold on IOS apps.

Meta, the data-sucking vampire squid of Silicon Valley, was hit with a €200 million penalty targeting its unfair "pay or consent" model, which forces EU users to either surrender their data or pay for ad-free access—a false choice that violates privacy and competition rules. That’s Zuckerbergese for: “Give us your soul (in the form of personal data), or give us your money (for an ad-free experience). Either way, we win.” It’s like a robber offering you a “premium no-robbing subscription.”

Meta’s complaint from their Chief Global Affairs Officer (a job title that sounds like it was invented by Orwell) that the ruling amounts to a "multi-billion-dollar tariff" is particularly disingenuous. The DMA doesn’t impose arbitrary costs—it punishes anti-competitive behaviour. If Meta wants to avoid fines, it should stop strong-arming users into data exploitation.

The Bigger Picture here is that the EU is doing what the U.S. won’t. For years, these companies have treated users like serfs on their digital plantations. While American regulators twiddle their thumbs and argue about whether monopolies are technically illegal if you say “innovation” enough times, the EU is actually doing something. And guess what? The sky hasn’t fallen. The internet hasn’t collapsed. All that’s happened is that two of the most arrogant companies on Earth have been told: “Play fair, or pay up.” The EU is also currently investigating Elon Musk and TikTok. Today’s fines are only the beginning. Although AI will present more complex challenges, as you can see below.