London, United Kingdom – The European Union has imposed a substantial fine of €700 million ($797 million) on tech giants Apple and Meta for violating the Digital Markets Act, marking a significant step in enforcing competition laws in the digital realm.

The penalties were levied following an investigation that revealed breaches of regulations by the two companies. Apple was fined €500 million ($570 million), while Meta, the owner of Facebook, was hit with a €200 million ($228 million) fine for their actions.

Meta’s chief global affairs officer, Joel Kaplan, criticized the EU’s decision, accusing it of hindering successful American businesses. He emphasized that the Commission’s enforcement was not just a monetary fine but also an imposition on their business model, resulting in unfavorable consequences for the company.

The European Commission’s investigation found that Meta had restricted users from accessing certain platforms without paying for them, violating the rights of consumers. Additionally, the company introduced an advertising model that required users to either consent to personalized data combination for ads or pay for an ad-free experience on Facebook and Instagram.

Apple, on the other hand, was found to have infringed upon the “steering” rule in the DMA, preventing app developers from informing customers about alternative offers outside the App Store. This limitation hindered consumers from accessing more affordable options, thus violating competition regulations.

In response to the fines, a representative for Apple expressed discontent with the European Commission’s decision, highlighting the company’s efforts to comply with the law while maintaining technological innovation. The representative stated that they plan to appeal the ruling, citing the Commission’s shifting requirements as a challenge in meeting compliance standards.

The European Commission emphasized the severity and duration of the breaches by Apple and Meta, justifying the fines imposed on the tech giants. The companies are required to pay the fines within 60 days to avoid additional financial penalties, signaling a strict enforcement of digital competition laws in the EU.