The European Union socked Apple with a €500 million fine for breaking anti-steering rules in the Digital Markets Act. It also fined Meta €200 million for DMA violations.
The two companies face further fines if they don’t make changes the EU demands.
EU imposes fine for Apple anti-steering restrictions
The purpose of the European Union’s Digital Markets Act is to open up Big Tech to more competition. It enforces a broad spectrum of changes, including requiring Apple to allow EU iPhone users to sideload applications outside the App Store.
Among the other requirements, Apple must allow software developers to “steer” customers to offers and payment systems outside the App Store. Apple has allegedly been dragging its feet, though.
“The European Commission found that Apple breached its anti-steering obligation under the Digital Markets Act,” the EC said Tuesday. “Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store. Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers.”
It also imposed a €500 million ($570) fine.
Meta fined for its ‘consent or pay’ model
Facebook’s parent company Meta got its own fine. The requires big tech companies to get users’ consent before combining their personal data between various services. Those users who do not consent must be given access to a similar but less personalised alternative.
Meta’s answer was to offer its EU users of Facebook and Instagram a choice between consenting to personal data combination for personalised advertising or paying a monthly subscription for an ad-free service.
“The Commission found that this model is not compliant with the DMA, as it did not give users the required specific choice to opt for a service that uses less of their personal data but is otherwise equivalent to the ‘personalised ads’ service,” the EC said. “Meta’s model also did not allow users to exercise their right to freely consent to the combination of their personal data.”
As a result, Meta got hit with a €200 ($227 million) fine.
Not the end of the matter
If Apple and Meta don’t make the changes the EU insists on, more fines are on the way.
“Apple and Meta are required to comply with the Commission’s decisions within 60 days, otherwise they risk periodic penalty payments,” the EC said.
But there’s also another alternative. Apple plans to appeal the decision, according to The Verge, and so will Meta, according to the New York Times.
