Meta and Apple hit with the EU’s first Digital Markets Act fines
The EU’s Digital Markets Act was designed to bring a battering ram to the Big Tech platforms considered “gatekeepers” — defined as “large digital platforms providing so called core platform services, such as for example online search engines, app stores, messenger services.”
The law went into force in November of 2022 (and became applicable in May of 2023), and since then it has not resulted in any fines... until today.
Apple was hit with a €500 million ($567 million) fine, and Meta received a €200 million fine ($227 million).
“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.”
According to the EU, Apple’s violation of the DMA was that it failed to allow third-party app stores on iOS, and it should allow iPhone apps to be downloaded from the open web rather than exclusively through the App Store, which is the current setup.
Meta’s violation was related to its “pay or consent” policy in the EU, which gave users a choice to either consent to sharing personal data for free access to its platforms, or pay to use the platforms with no tracking. The DMA ruling said that Meta needs to offer a third option: free use with limited data sharing.
The companies have 60 days to comply with the orders or additional fines will be levied. The companies are reportedly planning on appealing the rulings.
The law went into force in November of 2022 (and became applicable in May of 2023), and since then it has not resulted in any fines... until today.
Apple was hit with a €500 million ($567 million) fine, and Meta received a €200 million fine ($227 million).
“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.”
According to the EU, Apple’s violation of the DMA was that it failed to allow third-party app stores on iOS, and it should allow iPhone apps to be downloaded from the open web rather than exclusively through the App Store, which is the current setup.
Meta’s violation was related to its “pay or consent” policy in the EU, which gave users a choice to either consent to sharing personal data for free access to its platforms, or pay to use the platforms with no tracking. The DMA ruling said that Meta needs to offer a third option: free use with limited data sharing.
The companies have 60 days to comply with the orders or additional fines will be levied. The companies are reportedly planning on appealing the rulings.
