EU slaps Apple with $570m fine for violating Digital Markets Act

The European Commission has fined Apple €500 million ($570m) for violating the Digital Markets Act. 

Apple was found to have breached anti-steering rules following an investigation into its business practices. 

Under the Digital Markets Act, app developers must be allowed to inform users of, and direct them to, alternative offers outside Apple's App Store. 

However, the European Commission found that Apple restricts this, preventing developers from fully using alternative distribution channels and stopping consumers from accessing potentially cheaper options. 

Apple had previously tried to skirt the rules with alternative business terms in the EU which allowed developers to link out to their stores, but still charged a cut of that revenue.

“As part of today's decision, the Commission has ordered Apple to remove the technical and commercial restrictions on steering and to refrain from perpetuating the non-compliant conduct in the future, which includes adopting conduct with an equivalent object or effect," reads the Commission's statement. 

“The fine imposed on Apple takes into account the gravity and duration of the non-compliance.”

It was previously reported that Apple was set to face a smaller fine than prior antitrust penalties, over concerns of provoking a retaliation from US President Donald Trump.

Moreover, the Commission has closed a separate investigation into Apple’s user choice obligations, citing the company’s early and proactive efforts toward a compliance solution.

Epic weights in

Epic Games has expressed support for the Apple fine on its website and has called for policymakers in the UK, Japan, Brazil, and elsewhere to hold Apple accountable. 

The Fortnite maker said that the US must now also follow through to address these anti-competitive practices that stifle free speech, choice, and innovation.

Meta fine

Social networking giant Meta has also been slapped with a €200m ($214m) fine for its failure to offer consumers a less data-intensive service option for using Facebook and Instagram. It had instigated a payment option for users who did not want to share their data to comply with regulations.

The EU said this model was not compliant with the DMA as it did not give users the required specific choice to opt for a service that uses less of their personal data. The Commission is currently assessing a new version of the free personalised ads model.

Meta has responded by criticising the European Commission in a post, claiming it is unfairly targeting successful American companies while allowing Chinese and European firms to operate under different standards. 

“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," Meta wrote. 

“And by unfairly restricting personalised advertising the European Commission is also hurting European businesses and economies.”