Apple and Meta Sanctioned for DMA Violations

On April 23, 2025, the European Commission officially announced that it had sanctioned tech giants Apple and Meta with fines totaling €700 million for violating the Digital Markets Act (DMA).

The DMA is a European regulation aimed at ensuring fair competition in the digital market. This marks the first time Brussels has exercised the sanctioning powers provided by the DMA, which came into force last year. The decision sets a significant legal precedent and sends a strong political signal against anti-competitive practices.

The Regulatory Framework: What is the DMA?

The Digital Markets Act is an EU regulation that applies to so-called “gatekeepers.” These are systemic digital platforms capable of controlling access for a significant number of users and businesses, such as online search engines, app stores, and messaging services. The rules aim to prevent abuses of dominant positions, promoting the openness of digital markets and interoperability.

In summary, the DMA prohibits gatekeepers from:

  • Preventing app developers from promoting alternative offers.
  • Forcing users to accept the sharing of their data without explicit and informed consent.
  • Self-preferencing their own services to the detriment of competitors.

In this specific case, Apple and Meta were sanctioned for violating the first two prohibitions.

Apple: Obstacles to Competition via the App Store

The Commission imposed a €500 million fine on Apple, concluding that the company had placed unjustified restrictions on app developers, preventing them from informing users about subscription or purchase options available outside the App Store. This behavior, which has already drawn criticism from many companies in the sector, violates Article 5(4) of the DMA. This article requires gatekeepers to allow direct communication between developers and end-users, including regarding pricing conditions and alternative offers.

According to the Commission, Apple imposed “contractual terms and technical barriers” that discourage or make it ineffective for developers to provide alternative payment or subscription channels. At the same time, this prevents consumers from benefiting from less expensive solutions, thereby maintaining almost absolute control over the monetization of content distributed on iOS devices.

Early commentators on the decision believe that Apple, by abusing its gatekeeper position, did not respect either the spirit or the letter of the DMA. They also welcomed the part of the decision that orders the tech giant to refrain from perpetuating similar behaviors in the future.

Meta: A Non-Compliant Consent Model

Meta Platforms, the parent company of Facebook and Instagram, was fined €200 million. The core of the dispute concerns the adoption of a “pay or consent” system, introduced after the DMA came into force and maintained even after March 2024, when the obligations of the Digital Markets Act became legally binding.

European users were presented with a binary choice: either pay a monthly subscription to use the platforms without ads, or consent to the use of their personal data for targeted advertising.

The Commission ruled that this system does not meet the free choice requirements of the DMA. Meta’s proposed model was considered coercive, as it did not offer a “free and privacy-respecting” alternative, as required. Furthermore, the Commission highlighted the absence of a transparent mechanism to adequately inform the user about the use of their personal data, which therefore did not allow users to exercise their free and informed consent.

The Companies’ Reactions

During the proceedings, Apple and Meta had the opportunity to exercise their defense rights by examining in detail all documents contained in the Commission’s investigation files and responding comprehensively in writing to its preliminary conclusions.

Apple announced an appeal, stating that the new rules risk compromising user security and privacy and that the Commission’s intervention could favor unregulated actors, exposing users to new risks of fraud and tracking.

Meta, for its part, countered the accusations, arguing that the “pay or consent” model complies with both the DMA and the General Data Protection Regulation (GDPR). The company stressed that the system offers users “a real and transparent alternative,” in line with the demands of European regulators, and that “…by unfairly limiting personalized advertising, the Commission is also harming European businesses and economies,” stated Joel Kaplan, Meta’s Chief Global Affairs Officer.

The Impact on the European Digital Landscape

The European Commission’s decision represents a turning point in the relationship between European institutions and large digital platforms. While until now the debate revolved around potential abuses and the effectiveness of traditional antitrust sanctions (as in the Google Shopping or Android cases), with the DMA, Europe now has concrete and timely tools to limit the abuse of economic power and promote fair competition in markets increasingly dominated by a few global players.

These initial sanctions also serve as a warning to other platforms, such as Google, Amazon, Microsoft, and TikTok, which are also designated as gatekeepers by the DMA. The Commission has already launched parallel investigations to verify the compliance of other services and may issue further measures in the coming months. The coming months will be crucial for evaluating the actual modification of anti-competitive practices, consumer reactions, and the evolution of European jurisprudence.

From a legal perspective, the decision paves the way for specific European jurisprudence on “gatekeepers,” outlining interpretive criteria that will gradually be clarified by the Court of Justice of the European Union in appeal cases. The appeal proceedings could represent the first real “stress test” for the validity and proportionality of the provisions contained in the DMA.

One of the most delicate points concerns the balancing between competition protection and fundamental rights, particularly regarding privacy, security, and contractual freedom.

The Commission has reiterated that the objective of the DMA is not to “punish” large companies, but to promote a more open, innovative, and competitive digital ecosystem. In this regard, gatekeepers are called upon to review their business models in terms of greater transparency and interoperability towards a new digital governance. This is not just a punitive action. It is an invitation to build a new pact between technology, citizens, and businesses.

What is certain is that the European Union has sent a clear message: in the digital economy of the future, the rules apply even to the biggest players.

 

Teresa Franza