{"id":202387,"date":"2025-04-24T09:10:03","date_gmt":"2025-04-24T09:10:03","guid":{"rendered":"https:\/\/peraltafinancing.com\/apple-2\/eu-fines-apple-and-meta-total-of-800-million-in-first-use-of-digital-competition-law\/"},"modified":"2025-04-24T09:10:03","modified_gmt":"2025-04-24T09:10:03","slug":"eu-fines-apple-and-meta-total-of-800-million-in-first-use-of-digital-competition-law","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=202387","title":{"rendered":"EU Fines Apple and Meta Total of $800 Million in First Use of Digital Competition Law"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">European Union regulators said on Wednesday that Apple and Meta were the first companies to be penalized for violating a new law intended to increase competition in the digital economy, ratcheting up tensions with the Trump administration.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Apple was fined 500 million euros ($570 million) and Meta was fined \u20ac200 million ($230 million) for breaking the <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2022\/03\/24\/technology\/eu-regulation-apple-meta-google.html\" title=\"\">Digital Markets Act<\/a>, which was adopted in 2022. The European law aims to keep big tech companies from abusing their position as digital gatekeepers that can unilaterally impose requirements on users and businesses.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Apple violated the Digital Markets Act by restricting how app developers could communicate with customers about sales and other offers, according to the European Commission, the executive branch of the 27-nation bloc. Meta violated it by imposing a \u201cconsent or pay\u201d system that forces users to either allow their personal data to be used to target advertisements or pay a subscription fee for advertising-free versions of Facebook and Instagram.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Even as the United States and European Union tussle over trade, tariffs and the war in Ukraine, there has been some alignment over addressing the market power of the world\u2019s largest tech companies. The tech behemoths have amassed trillions of dollars in share value as owners of products and services that are essential for communication, commerce, information and more.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">In the United States, Google suffered two major antitrust defeats over the past year for abusing its power in the search and advertising business. Meta is on <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/13\/technology\/meta-ftc-trial-whatsapp-instagram.html\" title=\"\">trial in Washington<\/a> over accusations that it squashed competition through acquisitions. <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2023\/09\/26\/technology\/ftc-amazon.html\" title=\"\">Amazon<\/a> and <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/03\/21\/technology\/apple-doj-lawsuit-antitrust.html\" title=\"\">Apple<\/a> also face U.S. antitrust lawsuits.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Yet the Trump administration lashed out at the ruling on Wednesday.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThis novel form of economic extortion will not be tolerated by the United States,\u201d said Brian Hughes, a spokesman for the National Security Council. \u201cExtraterritorial regulations that specifically target and undermine American companies, stifle innovation and enable censorship will be recognized as barriers to trade and a direct threat to free civil society.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">A White House <a class=\"css-yywogo\" href=\"https:\/\/www.whitehouse.gov\/fact-sheets\/2025\/02\/fact-sheet-president-donald-j-trump-issues-directive-to-prevent-the-unfair-exploitation-of-american-innovation\/\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">memo<\/a> from February said officials would consider retaliation if the European Union targeted American tech companies under the Digital Markets Act or the Digital Services Act, a law focused on curbing illicit online content and disinformation.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Meta said it was likely to appeal the ruling, calling it an attack on American companies akin to imposing steep tariffs on their services.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThe European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards,\u201d Joel Kaplan, Meta\u2019s chief global affairs officer, said in a statement. \u201cThis isn\u2019t just about a fine; the commission forcing us to change our business model effectively imposes a multibillion-dollar tariff on Meta while requiring us to offer an inferior service.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Apple said it would appeal the decision and accused the commission of forcing it to make product changes that amounted to giving its technology away. Last year, the company was hit with a $2 billion E.U. fine for using the <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/03\/04\/business\/apple-eu-fine-app-store.html\" title=\"\">App Store to undercut competition<\/a> in music streaming.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe have spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law, none of which our users have asked for,\u201d Apple said in a statement. \u201cDespite countless meetings, the commission continues to move the goal posts every step of the way.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The investigations of Apple and Meta started <a class=\"css-yywogo\" href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/detail\/en\/ip_24_1689\" title=\"\" rel=\"noopener noreferrer\" target=\"_blank\">more than a year ago<\/a>, predating the Trump administration\u2019s trade war with Europe. But regulating the tech industry has become entangled in the trans-Atlantic negotiations. <\/p>\n<p class=\"css-at9mc1 evys1bk0\">The fines announced against Apple and Meta on Wednesday were lower than the maximum allowed under the law, which could have totaled billions, a possible sign that E.U. officials are taking a more cautious approach. <\/p>\n<p class=\"css-at9mc1 evys1bk0\">In Apple\u2019s case, regulators said the company failed to comply with rules meant to allow developers to communicate with customers about offers through the App Store.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div data-testid=\"companionColumn-3\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cConsumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers,\u201d the regulators said on Wednesday.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Regulators issued another preliminary ruling against Apple on Wednesday for restricting access to rivals\u2019 app stores on its devices. The commission closed a separate investigation after Apple gave customers more options to delete certain preinstalled apps.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">For Meta, regulators said the company violated the Digital Market Act with its ad-free subscription service that amounted to forcing users to pay for privacy. The law requires companies to obtain users\u2019 permission before combining their personal data from different services. Those who do not provide consent are meant to have access to a \u201cless personalized but equivalent alternative,\u201d the commission said.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Apple and Meta have 60 days to comply with the ruling or face additional fines.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The companies have \u201cfallen short\u201d of compliance by acting to \u201creinforce the dependence of business users and consumers on their platforms,\u201d said Teresa Ribera, the executive vice president of the European Commission who is overseeing application of the Digital Markets Act. \u201cAll companies operating in the E.U. must follow our laws and respect European values.\u201d<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>European Union regulators said on Wednesday that Apple and Meta were the first companies to be penalized for violating a new law intended to increase competition in the digital economy, ratcheting up tensions with the Trump administration. Apple was fined 500 million euros ($570 million) and Meta was fined \u20ac200 million ($230 million) for breaking [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":202388,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11768],"tags":[62063,1332,13924,5308,56331,824,57440,24129,77644,20768,77642,77645,12685,11435,70726,1648,77643,62062,8374,9473,52165,51781],"dealstore":[],"offerexpiration":[],"class_list":["post-202387","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-apple-2","tag-antitrust-laws-and-competition-issues","tag-apple","tag-apple-inc","tag-competition","tag-computers-and-the-internet","tag-digital","tag-european-commission","tag-european-union","tag-facebook-inc","tag-fines","tag-fines-penalties","tag-instagram-inc","tag-law","tag-meta","tag-meta-platforms-inc","tag-million","tag-mobile-applications","tag-regulation-and-deregulation-of-industry","tag-social-media","tag-total","tag-united-states-international-relations","tag-united-states-politics-and-government"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>EU Fines Apple and Meta Total of $800 Million in First Use of Digital Competition Law - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=202387\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EU Fines Apple and Meta Total of $800 Million in First Use of Digital Competition Law - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"European Union regulators said on Wednesday that Apple and Meta were the first companies to be penalized for violating a new law intended to increase competition in the digital economy, ratcheting up tensions with the Trump administration. 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