• Apple fined €500 million and Meta €200 million under the EU's Digital Markets Act.
• The fines could escalate if companies fail to comply with mandated changes.
• This marks the first significant enforcement action under the DMA against major tech firms.

The European Union has imposed fines on Apple and Meta amounting to €500 million ($570 million) and €200 million ($228 million), respectively, in the first penalties under the newly enacted Digital Markets Act (DMA). This legislation aims to improve competition by preventing market dominance by large tech companies, marking a significant regulatory shift in Europe's digital economy, according to channelnewsasia and scmp.

The fines stem from findings that Apple restricted app developers from informing users about cheaper purchasing options outside its App Store, violating user choice protections. Meanwhile, Meta's “pay or consent” system for Facebook and Instagram, which requires users to either agree to targeted ads or pay for ad-free access, was deemed coercive by EU regulators, as reported by indiatimes and trtglobal.

The EU commissioners described these penalties as a necessary response to ensure compliance with the DMA, with Antitrust Commissioner Teresa Ribera asserting that these actions are vital for creating a level playing field in the digital marketplace. In a statement, Ribera emphasized, “All companies operating in the EU must follow our laws and respect European values,” according to bangkokpost and lemonde.

The fines are expected to escalate if Apple and Meta do not comply with the EU's demands within the specified two-month period. Both companies have publicly decried the EU's decisions. Apple stated, “Today's announcements are yet another example of the European Commission unfairly targeting Apple," while Meta criticized the ruling as an attempt to "handicap successful American businesses," according to indiatimes and aa.

The backdrop to these fines includes heightened tensions with the United States, as President Donald Trump has referred to the DMA as a form of "economic extortion" against American companies. The U.S. government may pursue a stronger trade stance in response to these regulatory actions, emphasizing the complex interplay between digital regulation and international relations, according to channelnewsasia and lemonde.