On April 23, the European Union issued fines for the first time under its Digital Markets Act. It announced that Apple Inc. from the United States and Meta Platforms, Inc. (parent company of Facebook) had been fined €500 million and €200 million respectively for violating the EU's Digital Markets Act.
The European Commission stated in an announcement on the same day that according to the EU's Digital Markets Act, when app developers distribute apps through the Apple App Store, they should inform users for free whether there are better deals outside the Apple App Store and guide or even allow users to use these deals to purchase apps. However, due to the many restrictions imposed by Apple, neither app developers nor users can fully enjoy the benefits offered by other distribution channels outside the Apple App Store.
The announcement said that Apple failed to prove the necessity and appropriateness of the above - mentioned restrictions, thus violating the EU's Digital Markets Act and being fined €500 million. Subsequently, Apple also needs to make "rectifications" and cancel relevant technical and business restrictions. Otherwise, the EU will impose additional fines.
Regarding Meta Platforms, Inc., the announcement pointed out that according to the EU's Digital Markets Act, only with user consent can companies regarded as "gatekeepers" under the act push personalized ads to users after integrating personal data. If users refuse, companies should reduce the degree of personalization of the pushed ads. However, the "consent or pay" model launched by Meta in November 2023 did not comply with this rule. Users of Facebook and Instagram who refused to pay could not reduce the personalization of the pushed ads, nor could they filter the personal data integrated by Meta.
The announcement said that Meta had made "rectifications" and launched a new model in November 2024, which is currently being evaluated by the European Commission. For the sake of fairness, Meta's violation period is calculated from March 2024 when the EU's Digital Markets Act came into full effect to November 2024 when the new model was launched, and the fine is €200 million.
Shortly after the full implementation of the EU's Digital Markets Act on March 25, 2024, the EU launched an investigation into Apple and Meta under the act. Preliminary conclusions were reached in June and July 2024 respectively, indicating that both companies had violated the regulations. According to the EU's Digital Markets Act, if a company violates the rules, the maximum fine the EU can impose is 10% of the company's global total turnover. If a company repeatedly violates the rules, the maximum fine can reach 20% of the company's global total turnover.