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The European Union socked Apple with a \u20ac500 million fine for breaking anti-steering rules in the Digital Markets Act. It also fined Meta \u20ac200 million for DMA violations.<\/p>\n
The two companies face further fines if they don\u2019t make changes the EU demands.<\/p>\n The purpose of the European Union\u2019s Digital Markets Act<\/a> is to open up Big Tech to more competition. It enforces a broad spectrum of changes, including requiring Apple to allow EU iPhone users to sideload applications<\/a> outside the App Store.<\/p>\n Among the other requirements, Apple must allow software developers to \u201csteer\u201d customers to offers and payment systems outside the App Store. Apple has allegedly been dragging its feet, though.<\/p>\n \u201cThe European Commission found that Apple breached its anti-steering obligation<\/a> under the Digital Markets Act,\u201d the EC said Tuesday. \u201cDue 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.\u201d<\/p>\n It also imposed a \u20ac500 million ($570) fine.<\/p>\n Facebook\u2019s parent company Meta got its own fine. The requires big tech companies to get users\u2019 consent before combining their personal data between various services. Those users who do not consent must be given access to a similar but less personalised alternative.<\/p>\n Meta\u2019s answer was to offer its EU users of Facebook and Instagram a choice between consenting to personal data combination for personalised advertising or paying a monthly subscription for an ad-free service.<\/p>\n \u201cThe Commission found that this model is not compliant with the DMA, as it did not give users the required specific choice to opt for a service that uses less of their personal data but is otherwise equivalent to the \u2018personalised ads\u2019 service,\u201d the EC said. \u201cMeta\u2019s model also did not allow users to exercise their right to freely consent to the combination of their personal data.\u201d<\/p>\n As a result, Meta got hit with a \u20ac200 ($227 million) fine.<\/p>\n If Apple and Meta don\u2019t make the changes the EU insists on, more fines are on the way.<\/p>\n \u201cApple and Meta are required to comply with the Commission\u2019s decisions within 60 days, otherwise they risk periodic penalty payments,\u201d the EC said.<\/p>\n But there\u2019s also another alternative. Apple plans to appeal the decision<\/a>, according to The Verge<\/em>, and so will Meta<\/a>, according to the New York Times<\/em>. <\/p>\n<\/p><\/div>\nEU imposes fine for Apple anti-steering restrictions<\/h2>\n
Meta fined for its \u2018consent or pay\u2019 model<\/h3>\n
Not the end of the matter<\/h3>\n