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EU Imposes €700M Fines on Apple and Meta for Digital Markets Act Violations

Apple fined €500 million and Meta €200 million for non-compliance with the Digital Markets Act, with compliance required in 60 days to avoid penalties.

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Overview

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The European Union has imposed €700 million in fines on Apple (€500 million) and Meta (€200 million) for violating the Digital Markets Act (DMA). Apple was penalized for obstructing alternative app marketplaces, while Meta was cited for its data handling practices on Facebook and Instagram. Both companies must comply within 60 days or face additional penalties. These are the first fines under the DMA, and EU officials insist the measures are necessary to enhance consumer choice and competition. Both firms have expressed their intention to appeal the decisions, alleging unfair treatment by the Commission.

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Analysis

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  • The European Commission has imposed fines of €500 million on Apple and €200 million on Meta for breaching the Digital Markets Act, which aims to regulate the digital competition landscape in the EU.
  • These penalties were issued after thorough investigations into the companies' compliance with rules designed to ensure consumer choice and prevent major tech firms from dominating markets.
  • Both companies are required to comply with the commission's decisions within 60 days or face additional penalties, highlighting the EU's commitment to enforcing these new regulations.

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FAQ

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Apple was fined for preventing developers from freely communicating with consumers and steering them to alternative channels. Meta was fined for its 'pay or consent' advertising model, which doesn't comply with the DMA by forcing users to consent to data collection unless they pay a subscription.

Apple and Meta must comply within 60 days to avoid additional penalties.

Both Apple and Meta have signaled their intention to appeal the fines, comparing the EU's regulatory actions to tariffs.

History

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