Europe’s Digital Markets Act: Apple, Facebook parent Meta become first tech companies to be…

Apple and Facebook parent company have been fined by the European Union with two becoming the first tech giants to be slapped with significant fines under the bloc’s Digital Markets Act (DMA). The European Commission penalised Apple with $570 million (500 million euros) and Meta $228 million (200 million euros) for distinct breaches of the DMA.
The European Commission, the EU's executive arm, announced these penalties following a comprehensive year-long investigation into the two companies' adherence to the DMA – which is designed to foster a more competitive digital landscape by reducing barriers for smaller enterprises seeking to compete with dominant global technology corporations.

The Commission specifically found that Apple had contravened the DMA by imposing several restrictions that limited iPhone and iPad application developers from fully leveraging the benefits of alternative distribution channels beyond Apple's proprietary App Store.
Furthermore, the Commission highlighted that Apple's conduct prevented consumers from accessing potentially “alternative and cheaper offers” by obstructing app developers from directly informing users about such options.
In a separate ruling, the EU regulator determined that Meta's “binary ‘Consent or Pay' advertising model,” which presents users with a choice between accessing Facebook and Instagram for free with personalised advertisements or paying a subscription fee for an ad-free experience, also violated the DMA.
The Commission concluded that Meta's model failed to comply with the DMA because the company did not provide users with the option of a free service that utilises “less of their personal data,” thus limiting user choice and potentially hindering fair competition.

Apple said it will appeal the decision, adding that the commission unfairly targeted the company with moves that “are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free.”
Meta reportedly said it will likely appeal.
“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,” said Joel Kaplan, Meta’s chief global affairs officer, as per the Wall Street Journal.