The European Commission (EC) has found Apple and Meta in breach of its Digital Markets Act (DMA) and has served up hefty fines for both tech giants. Apple was found guilty over its anti-competitive App Store practices and is hit with a €500 million penalty. These include the App Store steering policies which prevent users from accessing content and apps from alternative platforms and developers from directly informing their users about these alternative offers.
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. – EC press release
Apple is now ordered to remove its steering restrictions with the fine “taking into account the gravity and duration of the non-compliance”.
Meta received a €200 million fine over Facebook and Instagram’s pay or consent ad model, which includes paid ad-free tiers for both platforms. The EC finds this approach in violation of the DMA as it does not offer non-consenting users a less personalized but equivalent alternative.
Apple and Meta have fallen short of compliance with the DMA by implementing measures that reinforce the dependence of business users and consumers on their platforms. – Teresa Ribera (EU Competition Commissioner)
Both Apple and Meta now have 60 days to comply with the EC’s demands or risk additional penalty payments. Apple has already confirmed its plans to appeal the ruling while Meta is also expected to follow suit.