Brussels: Apple was fined 500 million euros ($570 million) on Wednesday and 200 million euros for the EU antitrust regulator issued the first sanctions aimed at curbing large-scale technological powers under landmark legislation.
The EU fine could be with tensions with U.S. President Donald Trump, who threatened to impose fines on U.S. companies.
The sanctions come after a year-long investigation by EU executives, whether EU executives comply with the Digital Markets Act, whether the bill aims to allow smaller competitors to enter markets dominated by the largest companies.
Apple said it would challenge the EU fine.
“Today’s announcement is another example of the European Commission’s unfair approach to Apple in a series of decisions that are unfair to our users’ privacy and security, against products and forcing us to provide our technology for free,” Apple said in an emailed statement.
Mehta criticized the EU’s decision.
It said in an emailed statement: “The European Commission is trying to allow Chinese and European companies to operate with different standards.
“It’s more than a fine; the committee forces us to change our business model, effectively imposing billions of dollars in tariffs on the meta-elements while requiring us to provide inferior services.”
EU competition watchdog said Apple must remove technical and commercial restrictions to prevent app developers from trading cheaply outside the app store.
It said Meta’s binary paid model launched in November 2023 violated DMA.
The model provides free services funded by advertising revenue for Facebook and Instagram users who agree to track. Additionally, they can pay for ad-free services.
Meta discusses a new version that was launched last November with the EU. Both companies have two months to comply with orders or fines.
Apple avoided the fine in a separate investigation into browser options on iPhones, a change that allows users to switch to competitors’ browsers or search engines more easily. The regulator said these were DMA-compliant and closed the investigation on Wednesday.
iPhone Maker is still accused of violating DMA rules by blocking users from downloading alternative app stores and apps from the web in a practice called sideloading.
Regulators criticized Apple’s conditions, saying these uneasy developers were reluctant to use alternative app distribution channels on iOS, and asked them to choose business terms that included new fees, including core technology fees called Apple.
EU regulators also abandoned Meta’s market name as DMA gatekeepers because the number of users is below the threshold.
“We have taken firm but balanced enforcement actions against both companies in accordance with clear and predictable rules,” the committee said.
Reuters had made an EU decision on Apple and Meta of the dollar last month.
