EU fines U.S Tech Firms, Apple, Meta $800m for Breaching Digital Competition Rules

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By Bonny Amadi with Agency Reports

Two Top American Technology Companies Apple and Meta, have jointly been fined nearly $800 million by the European Union (EU) for allegedly breaching its digital competition regulations.

The development points to growing trade tension of which tariffs, regulations and restrictions may have become the order of the day, in the emerging global trade new realignment.

The European Commission, in a statement on Wednesday, said it was penalising the American companies, Apple to the tune of €500 million, or $571 million and Meta with €200 million or $228 million for violating the Digital Markets Act (DMA).

According to EU officials, Apple failed to adhere to “anti-steering” provisions, a requirement under the DMA that allows app developers to inform users about alternative offers outside Apple’s App Store without restriction.

The commission directed the tech giant to eliminate all forms of technical and commercial barriers preventing steering and to desist from repeating such practices. Reacting to the development, Apple said it would appeal the decision and described the commission’s action as “unfair”.

“Today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free,” the company said.

In Meta’s case, the commission ruled that the company’s “consent or pay” model for ad-free services on Facebook and Instagram, which was introduced in November 2023, violated EU rules on user data and digital advertising.

Joel Kaplan, Meta’s global affairs chief, criticised the EU’s ruling, saying that it is punishing American firms while giving other regions a pass.

“This isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta,” he said.

The EU, however, noted that its fine for Meta considered steps taken by the tech firm to comply with regulations through a revised version of its free personalised ads service that utilises fewer personal data for advertising.