Apple and Meta have been fined a combined 700 million euro for breaches of EU law.
The European Commission found both companies were in breach of the Digital Markets Act.
Apple's 500 million euro fine centres around it's App Store.
Under the Digital Markets Act, app developers should be able to inform customers of offers outside of the App Store.
For Meta - they were fined 200 million euro for it's 'consent or pay' model, whereby users of Facebook and Instagram choose between personalised advertising or an ad-free service.
It's understood Apple will challenge the decision.
While Meta has hit out at the Commission - saying it's holding American companies to different standards compared to European and Chinese companies.
Today’s fine follows a warning issued to Apple by the EU last year. The firm was told it needed to make changes to its in-house app store, web browser and agreements with app developers in efforts to adhere to new Digital Markets Act (DMA).
Changes included making room for alternative app stores on its devices, as the European Commission argued that app developers were forced into providing services, communicating with users and paying for access on only Apple’s App Store.
It squashed the firm’s long-running practice of creating an ‘Ecosystem’, whereby consumers can integrate their devices using Apple’s technology – such as iMessage, AirDrop and iCloud.
However, the EU argues that this does not provide consumers with enough choice around how to use the devices.
“The Commission [has] found that Apple fails to comply with this obligation,” a statement said today, adding that the firm imposes a “number of restrictions” which limit how European app developers trade and do business.
Restrictions can include charging engineers to release software updates to customers or placing commission fees on in-app purchases. The Commission has ordered Apple to remove all technical and commercial restrictions for European developers.
Commenting on the fine, which is more than double what has been issued to Meta, the Commission said that the sanction “imposed on Apple takes into account the gravity and duration of the non-compliance”.
Meta has been fined for seeking to introduce an ad-free subscription to their social media apps, Facebook and Instagram, in November 2023. The company was banned from using personal data for advertising in the EU following the announcement.
The Commission argued the ‘consent or pay’ model is not compliant under the DMA and did not give users a choice to opt out of their personal data being used for targeted advertising.
Meta has since announced places to release a new version of the free targeted advert model which uses less personal data. That model is currently under assessment from the European Commission.
Separately, the Commission has also decided to remove ‘Facebook Marketplace’ from the DMA as it does not meet the relevant threshold, 10,000 or more users. It follows a request from Meta that its product be reviewed.
Both companies have 60 days to implement changes to their services, or face larger fines. The sanctions can also be challenged, legally, by either company, who have yet to make a statement on the matter.
The European Commission said it has engaged with both tech firms on the matter.
