The European Commission has ruled that Apple breached its anti-steering obligation under the Digital Markets Act (DMA) and that Meta failed to offer consumers a service that uses less personal data. As a result, Apple has been fined €500 million and Meta €200 million.
These decisions follow extensive discussions with both companies. In March 2024, the Commission began investigating Apple’s App Store rules and Meta’s “pay or consent model.“ The companies were informed of the preliminary findings in June and July 2024 and were allowed to respond. The Commission can fine non-compliant companies up to 10% of their global annual turnover.
Apple and Meta were provided with the opportunity to exercise their rights of defence by reviewing all the documents in the Commission’s investigation files and responding comprehensively in writing to the Commission’s preliminary findings. The Commission can fine non-compliant companies up to 10% of their global annual turnover.
“Enabling free business and consumer choice is at the core of the rules laid down in the Digital Markets Act. This includes ensuring that citizens have full control over when and how their data is used online, and businesses can freely communicate with their own customers. The decisions adopted today find that both Apple and Meta have taken away this free choice from their users and are required to change their behaviour. We have a duty to protect the rights of citizens and innovative businesses in Europe and I am fully committed to this objective,” stated Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy.
Non-compliance decision on Apple’s steering terms
Under the Digital Markets Act (DMA), app developers distributing their apps through Apple’s App Store should inform customers about alternative offers outside the App Store and facilitate purchases at no cost. However, the Commission found that Apple is not complying with this requirement due to various restrictions that hinder developers from utilising alternative distribution channels. Consequently, consumers miss out on cheaper offers, as developers can’t directly inform them.
The Commission has ordered Apple to remove these restrictions and refrain from similar non-compliant behaviour in the future. The imposed fine reflects the seriousness and duration of Apple’s non-compliance. Additionally, the investigation into Apple’s user choice obligations has been closed after Apple engaged proactively to find a compliance solution.
Non-compliance decision on Meta’s “consent or pay“ model
Under DMA, gatekeepers must obtain users’ consent before combining personal data across services. Users who decline this consent should have access to a less personalised but equivalent alternative.
In November 2023, Meta launched a ‘Consent or Pay’ advertising model for EU users of Facebook and Instagram, allowing them to choose between consenting to data combination for personalised ads or paying for an ad-free experience.
However, the European Commission found this model non-compliant with the DMA because it lacked an adequate option for users to select a service that uses less personal data. In November 2024, Meta introduced a revised ads model that claims to use less personal data, which the Commission is currently evaluating.
The recent decision regarding Meta’s non-compliance refers to the period from March 2024, when DMA obligations became binding, until November 2024, when the new ads model was introduced. The fine imposed on Meta considers the severity and duration of this non-compliance. Additionally, the Commission decided that Facebook Marketplace should no longer be classified under the DMA, as it had fewer than 10,000 business users in 2024.
Apple and Meta must comply with these decisions within 60 days to avoid penalties, and the Commission continues to work with both companies to ensure adherence to the DMA.
