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The European Union has imposed a combined fine of €700 million on US tech giants Apple and Meta for breaching the bloc’s stringent digital competition laws, potentially heightening tensions with US President Donald Trump.

The European Commission on Wednesday levied a €500 million fine on Apple, citing its anti-competitive practice of preventing developers from directing users outside the App Store for cheaper deals.

Meta, the parent company of Facebook and Instagram, was fined €200 million for its controversial “pay or consent” data policy, which the Commission ruled violated user privacy rights under EU rules.

These penalties are the first major enforcement actions under the Digital Markets Act (DMA), which came into force last year to level the playing field for smaller competitors and regulate dominant online platforms.

The Commission warned that further penalties could follow if the companies fail to comply within 60 days, including potential “periodic penalty payments.”

This tough stance by Brussels comes amid ongoing trade tensions with President Trump, who has accused the EU of unfairly targeting American firms through what he calls “non-tariff barriers.”

Trump has previously imposed 25% tariffs on EU exports like steel, aluminum, and cars — and negotiations are ongoing to lift those duties.

Commissioner Teresa Ribera, speaking on the fines, emphasized, “these actions send a strong and clear message. The Commission has taken firm but balanced enforcement action.”

Apple swiftly announced it would appeal the decision.

In a statement, the company argued “today’s announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions 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 echoed similar sentiments.

Joel Kaplan, Meta’s Chief Global Affairs Officer and a known ally of Trump, criticized the EU for what he described as economic protectionism
“this isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service.”

Despite the fines, Apple received a partial reprieve as the EU closed a separate investigation after the company made it easier for users to choose default browsers and delete pre-installed apps — aligning with DMA requirements.

Meta’s fine stems from its “pay-for-privacy” model launched in November 2023.

Under this system, users must either agree to data tracking or pay for an ad-free version of Facebook and Instagram.

However, the EU concluded that Meta failed to offer a sufficiently equivalent, less-personalized alternative — thereby violating users’ rights to freely consent to data sharing.

A revised version of the system was submitted by Meta and is currently under EU review.

The fines, although smaller than previous penalties like Apple’s €1.8 billion fine under older rules, mark a bold assertion of EU authority in the digital space and set the stage for more clashes with Washington as Trump’s administration pushes back against European regulations targeting Big Tech.

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