EU Fines Apple and Meta Over DMA Violations
Foo Yun Chee and Jan Strupczewski (European Commission, MacRumors, Hacker News):
Apple was fined 500 million euros ($570 million) on Wednesday and Meta 200 million euros, as European Union antitrust regulators handed out the first sanctions under landmark legislation aimed at curbing the power of Big Tech.
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The EU competition watchdog said Apple must remove technical and commercial restrictions that prevent app developers from steering users to cheaper deals outside the App Store.
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Apple avoided a fine in a separate investigation into its browser options on iPhones after making changes that allow users to switch to a rival browser or search engine more easily. Regulators said these comply with the DMA and closed the investigation on Wednesday.
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The iPhone maker was still charged with breaching DMA rules on the grounds it hindered users from sideloading, a practice that involves downloading alternative app stores and apps from the web.
In addition to the fine, Apple has been issued with a cease-and-desist order requiring it to make further product changes by late June. If the firm fails to comply, the Commission can fine it for every additional day it is in breach of the law.
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Finally, the Commission opted to escalate its enforcement effort against Apple’s app store, issuing the iPhone-maker with a charge sheet concerning its dealings with alternative app marketplaces. These preliminary findings still need to be investigated further but could mean more DMA fines for Apple down the line.
Apple booked about $184B in profit last year, so this fine is about 0.3% of that. Maybe Apple just considers this the new cost of doing business in the EU? […] Something, not nothing, but definitely not a big deal. Teresa Ribera, the EC competition chief, is clearly trying to thread a political needle here.
Previously:
- Apple’s DMA Compliance Criticized
- European Commission Specification Proceedings
- EU Fines Apple $2 Billion Over Anti-Steering Rules
Update (2025-04-24): European Commission:
The Commission takes the preliminary view that Apple failed to comply with this obligation in view of the conditions it imposes on app (and app store) developers. Developers wanting to use alternative app distribution channels on iOS are disincentivised from doing so as this requires them to opt for business terms which include a new fee (Apple’s Core Technology Fee). Apple also introduced overly strict eligibility requirements, hampering developers’ ability to distribute their apps through alternative channels. Finally, Apple makes it overly burdensome and confusing for end users to install apps when using such alternative app distribution channels.
So is the entire idea of the Core Technology Fee disallowed? Or is the fee too high? Does Apple need to just make app distribution free and unfettered, no fees, no restrictions?
Who knows?
I would love to know what the dialog has been like between Apple and the EC. It seems obvious that their attempts at compliance were trying to subvert the intent of the regulations. But how did we arrive at this situation where Apple built and shipped something and a year later the preliminary view is that it’s not compliant? Is it just like App Review, where you can get pulled for violating the rules after already being approved? Did Apple choose not to apprise the EC of its plans in advance, to better delay meaningful change? Did the EC change its mind or give unclear guidance or not want to listen in the first place?
Speaking to Reuters, a spokesperson for the White House condemned the EU’s actions, signaling growing transatlantic tensions over regulation of U.S. technology firms:
This novel form of economic extortion will not be tolerated by the United States. 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.
I think Tim Cook not being a product guy has really hurt in terms of what Apple delivers to its customers. But he seems to be good at the business thing.
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Play stupid games, win stupid prizes. Cook and co have been stacking up raffle tickets for years—I suspect this is just the first of many draws.
Ahh I see Gruber has now progressed from arguing that Apple wasn't in breach of the law, to the law is bad / broken, to just saying it's a cost of business, and Apple should remain a criminal enterprise, pay the fines and ignore laws 'MURICA doesn't agree with.
The Venn diagram of Gruber and MAGA is basically a single circle when it comes to Apple.
These decrees of yours are no different from spiders' webs. They'll restrain anyone weak and insignificant who gets caught in them, but they'll be torn to shreds by people with power and wealth.
-Anacharsis
That White House quote that Gruber is endorsing regarding "Extraterritorial regulations that specifically target and undermine American companies" is just chef's kiss given that the US love that kind of thing.
This is no way to curry favour with Trump‘s America, Brussels. Stop quaffing your champagne and woofing down your oysters and fight, can’t you? Competition *can* be important, but it most certainly isn't *everything*.
@Someone Yes, I believe he also suggested that the genocide in Gaza were Palestinians "fucking around and finding out". I really think we must put the delightfully inaccurate political descriptor "moderate" to bed.
"someebby" is, of course, me, Sebby. The capital indicator, dot 6, was misrecognised by the new-and-improved Braille Screen Input as dot 5, and dot 5 followed by S is "some" in grade 2 Braille. So I apologise for getting my handle wrong in my previous comment. Michael, please feel free to fix (and, if you like, delete this comment).
@Someone Distressing as it may be, I think Gruber is correct that Apple sees this as just a cost of doing business and/or a problem the US government can solve for them. There’s a long corporate history of acting like the rules don’t apply. Steve Jobs parked in handicap parking spaces for decades and had no license plate to try to avoid the fines, paying them when necessary without altering his behavior. John Sculley was kind of the mirror of Tim Cook, switching teams and donating to Bill Clinton when it looked like the Democrats would be more favorable to Apple and Silicon Valley interests. He got the seat of honor at the State of the Union, and the administration heavily invested in technology and reduced regulations that got in the way of selling products overseas.
