The European Union Commission has fined Meta €200 million and Apple €500 million for breaches of the Digital Markets Act (DMA). Meta was penalized for its "Consent or Pay" model, which did not provide EU users with a genuine choice for less personalized advertising, violating DMA's requirements for user consent. Apple was fined for failing to comply with anti-steering obligations, restricting app developers from informing customers about alternative offers outside the App Store.
Apple's Non-Compliance
The Commission found that Apple imposed restrictions preventing app developers from fully utilizing alternative distribution channels, thus limiting consumer access to cheaper offers. Apple is required to remove these restrictions and ensure compliance moving forward. The fine reflects the severity and duration of non-compliance.
Meta's Non-Compliance
Meta's model, introduced in November 2023, forced users to choose between consenting to data combination for personalized ads or paying for an ad-free experience, which did not meet DMA standards. The Commission is currently evaluating a new version of Meta's ad model that claims to use less personal data. The fine on Meta also considers the gravity and duration of its non-compliance.
Facebook Marketplace Designation
Additionally, the Commission has removed the DMA designation from Meta's Facebook Marketplace, as it no longer meets the threshold for being an important gateway for business users, following a request from Meta.
Next Steps
Both companies must comply with the Commission's decisions within 60 days to avoid further penalties. The Commission will continue to engage with Apple and Meta to ensure adherence to DMA regulations. The investigations into their practices began in March 2024, with preliminary findings communicated in June and July 2024. Non-compliant companies can face fines of up to 10% of their global annual turnover.
