The European Union has fined tech giants Apple and Meta hundreds of millions of euros on Wednesday for breaking new digital market rules. According to Reuters, Apple must pay €500 million (about ₹45 billion) and Meta must pay €200 million (about ₹18 billion). EU antitrust chief Teresa Ribera said these first-ever penalties under the Digital Markets Act aim to stop big companies from blocking smaller competitors.
What Are These New Rules?
The Digital Markets Act (DMA) is a new set of rules that prevents powerful tech companies from unfair business practices. Think of it like traffic laws for the digital highway – they make sure big trucks (tech giants) don’t push smaller vehicles (competitors) off the road.
What Did Apple and Meta Do Wrong?
Apple broke the rules by stopping app developers from telling users about cheaper ways to buy the same products outside the App Store. This is like a shopping mall forbidding store owners from telling customers they can get better deals elsewhere.
Meta (which owns Facebook and Instagram) used a “pay-or-consent” model that forced users to make an unfair choice: either share personal data for targeted ads or pay money for an ad-free experience.
| Company | Fine Amount | What They Did Wrong |
|---|---|---|
| Apple | €500 million | Blocked app developers from telling users about cheaper options outside App Store |
| Meta | €200 million | “Pay-or-consent” model forcing users to share data or pay for ad-free access |
Why Is the EU Taking This Action?
- Protect consumer choice – giving people more options
- Create fair markets – helping smaller companies compete
- Stop data misuse – limiting excessive collection of personal information
- Prevent tech giants from becoming too powerful
What Happens Next?
Both companies have two months to fix these problems or face even bigger fines. The White House has criticized the EU’s approach, calling it “economic extortion”, showing growing tensions between US tech companies and European regulators.
These historic fines mark the beginning of a new era in tech regulation. The EU’s tough stance against market dominance could inspire similar rules in other countries, potentially changing how tech giants operate worldwide. For everyday users, this could mean more choices and better protection of your personal information.
