The European Union’s competition authority has imposed hefty fines on major U.S. tech firms for violating the Digital Markets Act (DMA), which is designed to ensure fair competition and give smaller companies a fighting chance in the digital marketplace.

Apple was fined €500 million (approximately $570 million) for restricting iPhone users from downloading apps through alternative sources outside of its own App Store, such as third-party stores or websites. This practice was deemed to be in breach of the DMA.

Meanwhile, Meta, led by Mark Zuckerberg, faced a $228 million fine over its "pay-or-consent" model introduced in November 2023. Under this model, users on Facebook and Instagram could either allow tracking for personalized ads or pay for an ad-free experience. Regulators found that this approach failed to meet the DMA’s requirement for genuine user consent regarding data tracking.

In an emailed statement published in Reuters, Apple said, “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 in an emailed statement stated, “The European Commission is attempting to handicap successful American businesses, while allowing Chinese and European companies to operate under different standards. This isn't just about a fine; the Commission forcing us to change our business model, effectively imposing a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service.”