Recently, the EU imposed big fines on Apple and Meta, two of the leading US big tech companies. Apple was the hardest hit with a €500 million fine. Meta, on the other hand, got a €200 million one. The sanctions come in response to certain business practices at both firms.
Like most of the recent major sanctions imposed by the EU, the latest ones fall under the Digital Markets Act. Since its establishment, Europe has had much more power than before to directly confront tech giants.
Apple claimed it is being “unfairly” targeted by the European Commission. The company also claims that the regulators’ demands may pose a risk to user privacy and security. The EU measures “are bad for the privacy and security of our users, bad for our products, and force us to give away our technology for free,” the brand’s statement reads.
The White House responds to the latest EU fines on US companies
Now, it’s the US White House responding to the EU fines against Apple and Meta. “This novel form of economic extortion will not be tolerated by the United States,” said a spokesperson, as reported by Reuters. “Extraterritorial regulations that specifically target and undermine American companies, stifle innovation, and enable censorship will be recognized as barriers to trade and a direct threat to free civil society.”
Basically, the US government thinks that the EU is overstepping its bounds with these types of sanctions. JD Vance, Vice President of the United States, had already publicly declared his opposition to overregulation in Europe. Trump’s entire cabinet seems to share the same position on the matter.
What was the cause of the fines?
In Apple’s case, the fine is a consequence of the company’s failure to comply with its obligations to App Store developers. Some time ago, the commission required the Cupertino’s giant to allow developers to freely set alternative payment methods besides Apple Pay. However, it appears the company has not implemented this requirement on a large scale.
On the other hand, Meta’s sanction stems from its “pay-or-consent” policy. If you’re not aware, the EU required Meta to offer an alternative where users could continue using their social media platforms without the collection of usage data. Meta’s response was to offer European users the option to pay for maintaining their privacy. Otherwise, the social platform assumes the user consents to the data tracking.
Teresa Ribera, the EU’s new antitrust chief, was pleased with the resolution. “It sends a strong and clear message… [The DMA] protects European consumers,” she said. The commission states that both Apple and Meta had “fallen short.” As expected, Apple plans to appeal the fine, and Meta is likely to do so as well. Hopefully, more news will emerge soon.
