Apple Inc. and Meta Platforms Inc. have been fined a total of €700 million (about $798 million) by the European Union for not following new rules for big tech companies. The EU gave Apple a €500 million fine and Meta a €200 million fine because they didn’t comply with the Digital Markets Act. This law tells tech giants what they can and can’t do.
These fines are lower than what other companies have faced before, which some may think is a way to avoid angering former U.S. President Donald Trump. He’s been vocal about wanting to impose tariffs on countries that create rules that hurt American businesses.
The European Commission stated that Apple didn’t allow app developers to sell their products outside the App Store, while Meta’s advertising model on Facebook and Instagram was against the new tech law. EU regulators can fine companies up to 10% of their global revenue if they break these rules.
EU antitrust chief Teresa Ribera said, “All companies working in the EU must follow our laws.” Apple and Meta have 60 days to comply with the decision, or they could face more fines. Apple was also told that its changes to app fees aren’t acceptable under EU rules.
Apple reacted strongly to its fine, saying the EU is being unfair and making them give away their technology for free. The company plans to appeal the fine. Similarly, Meta criticized the EU for treating American companies unfairly compared to Chinese and European firms.
However, Apple has had some good news as the EU ended an investigation into its internet browsers after Apple made changes to give users more options. The EU also decided not to go after Facebook Marketplace.
In recent years, the EU has fined many other big companies, including over $8 billion against Google and a €13 billion bill for Apple to pay back taxes to Ireland. They have also made changes to Amazon and Apple’s services and looked into Microsoft’s video call software, Teams.
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