European Union Drops Fantastic Fines To Apple & Meta, Here's Why!

Head of EU Antitrust, Margrethe Vestager (photo: x @loppinion_fr)

The European Union imposed fines on Apple of 500 million euros (around Rp. 5 trillion) and Meta of 200 million euros (around Rp. 3.7 trillion) on Wednesday, April 23. This is part of the first sanction under the Digital Markets Act (Digital Markets Act/DMA) which aims to limit the dominance of major technology companies.

The two companies were given two months to comply with EU orders, or face additional daily fines. Apple said it would appeal, while Meta criticized the decision.

This fine is fairly light compared to the sentence imposed by the former Head of the European Union Antitrust, Margrethe Vestager. An internal source said that this was due to the short period of violation, the focus on compliance over sanctions, and the desire to avoid retaliation from US President Donald Trump, who previously threatened to impose tariffs on countries punishing US companies.

Apple was declared to have violated DMA for imposing technical and commercial restrictions that prevent app developers from directing users to cheaper offerings outside the App Store. In addition, the European Commission also highlighted new costs from Apple called the Core Technology Fee, which is considered to hinder developers from using alternative distribution channels on iOS.

Meanwhile, Meta was sanctioned for the "pay or agree" model implemented from November 2023 to November 2024. The model forced Facebook and Instagram users to choose between approving data tracking for free services, or paying for ad-free services. Although Meta has changed this model since November 2024, the European Commission is still investigating whether the changes are in accordance with DMA.

Meta commented that the decision "based on imposing billions of dollars in tariffs on Meta and forced us to provide lower quality services". Meta also said that the European Commission had been unfair to American companies.

Investigations Against Google And X Still Continue

Elon Musk's Google and X (formerly Elon Musk's Twitter) are also still in the process of being investigated and have the potential to receive sanctions. A recent decision by a US court that states Google is dominating the digital advertising market illegally, provides additional impetus for European regulators.

Apple managed to avoid fines in a separate investigation regarding browser options on the iPhone after the company made changes that made it easier for users to switch to browsers or other search engines.

The European Commission also revoked the "gatekeeper" status for Meta Marketplace as its number of users decreased below the threshold set by DMA.

"We have taken firm but balanced law enforcement measures against these two companies, based on clear and predictable rules. All companies operating in the European Union must comply with our laws and respect European values," said EU Antitrust Chief. Ribera, quoted by VOI from Reuters.

EU lawmaker Andreas Schwab urged the Commission to continue investigating Google's advertising business and platform X, without delaying a decision.

"There should be no leniency in law enforcement, because this can affect the importance of overall competition policies," he said. Decisions that appear to be influenced by trade policy issues can be dangerous for the entire EU construction.