The Commission closed a separate investigation into Apple after the tech giant updated its services.
The European Union has fined Apple €500m and Meta €200m after finding that the two tech juggernauts breached its Digital Markets Act (DMA).
The two companies are the first to be hit with penalties under the DMA which was adopted back in 2022.
It was reported last month that the EU would impose minimal fines on Apple and Meta to avoid increasing tensions with the US, which has continually criticised the EU’s regulations on tech. US president Donald Trump even described the region’s fines as “overseas extortion”.
The EU first started probing Apple, Meta and Google’s owner Alphabet under the DMA in March 2024.
It was concerned that Apple’s rules around its web browser, App Store and default settings might be preventing customers from exercising their choice of services.
The Commission found that developers who distribute their apps via Apple’s App Store are unable to inform their customers freely of alternate offers outside the App Store due to a “number of restrictions” imposed by the iPhone maker.
As part of its decision today (23 April), the EU has ordered Apple to remove the technical and commercial restrictions on app steering.
Separately, the Commission closed its investigation into Apple over the company’s DMA obligation to allow users to easily uninstall any software applications, change default settings on iOS, as well as to choose their default web browser.
According to the EU, the investigation’s closure follows a “constructive dialogue between the Commission and Apple”. As a result, Apple changed its browser choice screen, streamlining the user experience of selecting and setting a new default browser on iPhones.
The EU says that the company also made it easier for users to change default settings for calling, messaging, call filtering, keyboards, password managers and translation services on iPhones.
Now, a new menu now allows users to adjust their default settings in one centralised location, streamlining the customisation process.
In addition, users can now uninstall several Apple pre-installed apps, such as Safari, something which could not be done previously.
Meanwhile Meta was being investigated for its ‘pay or consent’ model, which required users to either pay or consent to personalised ads. These targeted ads would be based on personal data, which users could avoid through a fee.
Through its investigation, the Commission concluded that Meta’s model is not compliant with the DMA as it did not give users the choice to opt for a service that uses less personal data, while also not allowing users to freely consent or reject the combination of their personal data.
Although, after discussions with the Commission, Meta introduced a different version of its free personalised ads model late last year, offering users an option that allegedly uses less personal data to display advertisements. The Commission is currently assessing this new option, it said.
The penalty Meta received today is for a period of around eight months between March 2024, when the DMA obligations became legally binding, and November 2024, when Meta’s new ad model was launched.
“Today’s decisions send a strong and clear message,” said Teresa Ribera, the EU’s executive VP for Clean, Just and Competitive Transition.
“The Digital Markets Act is a crucial instrument to unlock potential, choice and growth by ensuring digital players can operate in contestable and fair markets. It protects European consumers and levels the playing field.
“Apple and Meta have fallen short of compliance with the DMA by implementing measures that reinforce the dependence of business users and consumers on their platforms. All companies operating in the EU must follow our laws and respect European values,” she added.
Henna Virkkunen, the executive VP for Tech Sovereignty, Security and Democracy, said: “Enabling free business and consumer choice is at the core of the rules laid down in the Digital Markets Act. This includes ensuring that citizens have full control over when and how their data is used online, and businesses can freely communicate with their own customers.
“The decisions adopted today find that both Apple and Meta have taken away this free choice from their users and are required to change their behaviour.”
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