EU Strikes First Under Digital Markets Act, Fines Apple and Meta

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Posted by newadmin on 2025-04-25 08:39:03 |

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In a groundbreaking move under the new Digital Markets Act (DMA), the European Union has fined Apple €500 million and Meta €200 million, marking the first enforcement actions against Big Tech under the regulation. The DMA, which came into effect in 2024, aims to curb the dominance of tech "gatekeepers" and foster fairer competition in the digital economy.

Apple’s fine stems from its practice of limiting app developers from directing users to alternative purchasing options outside the App Store, a move the EU says restricts consumer choice. Meta was penalized for its controversial “pay or consent” model, which requires users to either pay for an ad-free experience or accept targeted advertising, thereby pressuring users into data sharing.

The fines, though significant, are lower than past EU antitrust penalties, reflecting a shift toward proactive regulation rather than retrospective punishment. The EU’s assertive stance sends a strong message about reining in monopolistic behavior and setting a global benchmark for digital market governance.

Both companies have voiced strong objections and intend to appeal. Apple argues that the ruling undermines its privacy-focused model, while Meta claims the decision unfairly targets U.S. firms.

These actions could heighten EU-U.S. tensions and influence how digital markets are regulated worldwide, potentially setting a precedent for stricter oversight of tech giants globally.

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