European Commission Fines Apple €500M and Meta €200M for Breaching Digital Markets Act

The European Commission:

Today, the European Commission found that Apple breached its anti-steering obligation under the Digital Markets Act (DMA), and that Meta breached the DMA obligation to give consumers the choice of a service that uses less of their personal data. Therefore, the Commission has fined Apple and Meta with €500 million and €200 million respectively. [...]

Non-compliance decision on Apple’s steering terms

Under the DMA, app developers distributing their apps via Apple’s App Store should be able to inform customers, free of charge, of alternative offers outside the App Store, steer them to those offers and allow them to make purchases.

The Commission found that Apple fails to comply with this obligation. Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store. Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers. The company has failed to demonstrate that these restrictions are objectively necessary and proportionate.

As part of today’s decision, the Commission has ordered Apple to remove the technical and commercial restrictions on steering and to refrain from perpetuating the non-compliant conduct in the future, which includes adopting conduct with an equivalent object or effect.

The fine imposed on Apple takes into account the gravity and duration of the non-compliance.

This finding — and the scope of the fine (roughly $570M converted from euros) — was completely in line with (at least my) expectations. Apple booked about $184B in profit last year, so this fine is about 0.3% of that. Maybe Apple just considers this the new cost of doing business in the EU? It’s not nothing, but it’s about 1/80th of the theoretical maximum fine the EU could have assessed, $39B.

Something, not nothing, but definitely not a big deal. Teresa Ribera, the EC competition chief, is clearly trying to thread a political needle here. Fines big enough to create the impression that the EU is asserting itself, but small enough not to actually be all that inflammatory amidst the Trump-initiated mad-king trade war. Even Ribera’s job title — Executive Vice-President for Clean, Just and Competitive Transition — seems designed to de-escalate tensions. Margrethe Vestager was adamantly against American companies. Ribera is not.

Non-compliance decision on Meta’s “consent or pay” model

Under the DMA, gatekeepers must seek users’ consent for combining their personal data between services. Those users who do not consent must have access to a less personalised but equivalent alternative.

In November 2023, Meta introduced a binary ‘Consent or Pay’ advertising model. Under this model, EU users of Facebook and Instagram had a choice between consenting to personal data combination for personalised advertising or paying a monthly subscription for an ad-free service.

The Commission found that this model is not compliant with the DMA, as it did not give users the required specific choice to opt for a service that uses less of their personal data but is otherwise equivalent to the ‘personalised ads’ service. Meta’s model also did not allow users to exercise their right to freely consent to the combination of their personal data.

The wild thing about this is that all sorts of companies in the EU use the “pay or OK” model. I get that the whole point of the DMA is that the named “gatekeepers” have to play by different rules because they’re “gatekeepers”, but back in 2018, no less an authority than former EC competition chief Margrethe Vestager said, “I would like to have a Facebook in which I pay a fee each month, but I would have no tracking and advertising and the full benefits of privacy.” That’s exactly what Meta has offered. And it turns out, actual EU citizens don’t want that. They’d almost all rather use Meta’s products free of charge with targeted ads than pay a fair price to use them without tracking. So now the EC has moved the goalposts and insists Meta must, effectively, give away their products for pennies on the dollar.

★ Wednesday, 23 April 2025