EU hits Apple and Meta with €700m of fines

The European Union has ordered Apple and Meta to pay a combined €700m (£599m) in the first fines it has issued under legislation intended to curb the power of big tech.

It has issued a €500m (£428m) fine to Apple over its App Store, while Meta has been fined €200m (£171m) over how much choice users had to consent to data collection.

"We have a duty to protect the rights of citizens and innovative businesses in Europe," Commissioner Henna Virkkunen said in a statement.

The two tech firms have reacted angrily, with Meta accusing the EU of "attempting to handicap successful American businesses" and Apple saying it was being "unfairly targeted" and forced to "give away our technology for free."

The European Commission - the EU's executive - started both investigations last year under a new law brought in to promote fairness in the tech sector called the Digital Markets Act (DMA).

The case against Apple was over its App Store.

The Commission says it must freely offer alternative app marketplaces to users and app developers - and says Apple was in breach of this.

Meanwhile, Meta's fine was over the choices it offered on data collection.

Meta introduced a "consent or pay" model, which meant users had to choose between allowing Meta to combine data it had collected on Facebook and Instagram, or paying a monthly subscription.

The Commission says this model did not allow users to freely consent to how their data was used.

In November, Meta introduced another option, which the Commission says "allegedly uses less personal data to display advertisements."

The Commission is currently assessing the new option.

In both cases, the Commission says the size of the fine takes into account "the gravity and duration of the non-compliance".

Both companies have 60 days to comply or risk further fines.

"Apple and Meta have fallen short of compliance with the DMA by implementing measures that reinforce the dependence of business users and consumers on their platforms," said Commissioner Teresa Ribera.

"As a result, we have taken firm but balanced enforcement action against both companies, based on clear and predictable rules."

Apple said the Commission had made "a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free."

It also accused the Commission of "[moving] the goal posts" during their meetings.

Meta said the ruling means Chinese and European companies are allowed to operate to different standards compared to American businesses.

"This isn't just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service," it said in a statement.