Ad Banner
Advertisement by Open Privilege

EU fines spark US fury over tech crackdown

Image Credits: UnsplashImage Credits: Unsplash
  • Apple and Meta were fined €500M and €200M respectively under the EU's Digital Markets Act for anticompetitive practices involving app restrictions and ad consent models.
  • The United States condemned the penalties, calling them "economic extortion" and accusing the EU of unfairly targeting American firms.
  • The fines have escalated transatlantic tensions and may influence future global regulations on tech giants.

[EUROPE] The United States has sharply criticized the European Union's recent imposition of significant fines on American tech giants Apple and Meta, labeling the actions as a "novel form of economic extortion." The European Commission levied a €500 million ($570 million) penalty on Apple and a €200 million fine on Meta for breaching the EU's Digital Markets Act (DMA), a regulatory framework aimed at curbing the dominance of major tech platforms and promoting fair competition.​

The DMA, which came into effect in March 2024, targets so-called "gatekeeper" platforms—large tech companies that control critical digital infrastructure. Apple was fined for restricting app developers from directing users to alternative offers outside its App Store, thereby limiting consumer choice. Meta faced penalties for its "pay or consent" model on Facebook and Instagram, which required users to either accept targeted ads based on personal data or pay to avoid them until November 2024.

These fines mark the first enforcement actions under the DMA and come amid ongoing trade negotiations between the EU and the U.S.

U.S. Response: Accusations of Discrimination

The White House swiftly condemned the EU's actions, arguing that the fines unfairly target U.S. companies and constitute an unjustified barrier to trade. A spokesperson described the penalties as a "novel form of economic extortion," asserting that the DMA's provisions discriminate against American firms and stifle innovation.

Meta echoed these sentiments, with Chief Global Affairs Officer Joel Kaplan stating that the fines amounted to a "multi-billion-dollar tariff" and accused the EU of attempting to "handicap" successful American businesses while allowing Chinese and European companies to operate under different standards.​

Apple also criticized the EU's decision, claiming that the penalties unfairly target the company and could harm user privacy and security. A spokesperson for Apple indicated the company's intention to appeal the decision and continue engaging with the Commission in service of its European customers.

EU's Defense: Upholding Fair Competition

In response, EU officials defended the fines as necessary measures to ensure compliance with the DMA and promote fair competition. EU Competition Commissioner Teresa Ribera emphasized that all companies operating in the EU must follow the laws and respect European values. She described the enforcement actions as "firm but balanced," based on clear and predictable rules.

The European Commission has given Apple and Meta 60 days to comply with the required changes or face additional sanctions. Failure to adhere to the DMA's provisions could result in fines of up to 10% of a company's global annual turnover, with repeat offenses potentially leading to penalties as high as 20%.

Implications for Global Trade Relations

The imposition of these fines has intensified existing trade tensions between the EU and the U.S., particularly under President Donald Trump's administration. The U.S. has previously threatened retaliatory tariffs against nations penalizing American businesses, and these latest developments are likely to exacerbate those tensions.

The EU's actions also raise questions about the global regulatory landscape for tech companies, as other jurisdictions may look to the DMA as a model for regulating digital markets. The outcome of this dispute could have far-reaching implications for how major tech platforms operate worldwide.​

The European Commission's fines against Apple and Meta represent a significant enforcement of the Digital Markets Act and underscore the EU's commitment to regulating digital markets. However, the U.S.'s strong objections highlight the challenges of balancing national interests with global regulatory standards. As both sides prepare for potential appeals and further negotiations, the outcome of this dispute will likely shape the future of digital market regulation and transatlantic trade relations.


Ad Banner
Advertisement by Open Privilege

Read More

Economy Europe
Image Credits: Unsplash
EconomyMay 20, 2025 at 8:30:00 AM

Oil prices slip amid economic uncertainty and geopolitical tensions

[WORLD] Oil prices dipped on Monday, pressured by Moody's downgrade of the U.S. sovereign credit rating and official data revealing slower growth in...

Politics Europe
Image Credits: Unsplash
PoliticsMay 20, 2025 at 6:30:00 AM

Trump-Putin call fails to end Ukraine conflict

[EUROPE] In a highly anticipated phone call between former U.S. President Donald Trump and Russian President Vladimir Putin, no significant progress was made...

Culture Europe
Image Credits: Unsplash
CultureMay 20, 2025 at 6:00:00 AM

How to build a better company culture

[WORLD] In today’s rapidly evolving business landscape, cultivating a strong organizational culture is not just a strategic advantage—it’s a necessity. Leaders who actively...

Tech Europe
Image Credits: Unsplash
TechMay 20, 2025 at 12:30:00 AM

Russia fines Apple over alleged LGBT propaganda violations

[WORLD] A Russian court has imposed a fine of 7.5 million roubles ($93,500) on U.S. tech giant Apple for three separate violations of...

Mortgages Europe
Image Credits: Unsplash
MortgagesMay 19, 2025 at 9:30:00 PM

Dave Ramsey warns homebuyers of costly mortgage mistake

[UNITED STATES] Financial expert Dave Ramsey is warning prospective homebuyers against a prevalent mortgage mistake that could lead to paying tens of thousands...

Business Europe
Image Credits: Unsplash
BusinessMay 19, 2025 at 9:30:00 PM

Italy museum visits break population record

[EUROPE] Italy’s museums made history in 2024, drawing more than 60 million visitors-a figure that, for the first time, exceeded the country’s own...

Health & Wellness Europe
Image Credits: Unsplash
Health & WellnessMay 19, 2025 at 8:30:00 PM

Protein gaps in vegan diets

[WORLD] As veganism continues its rapid ascent in popularity, a new wave of scientific research is challenging long-held assumptions about the adequacy of...

Economy Europe
Image Credits: Unsplash
EconomyMay 19, 2025 at 8:00:00 PM

Americans tighten spending as economic worries grow

[UNITED STATES] Following a surge in panic buying, a growing number of Americans are tightening their budgets and adjusting to a more minimalist...

Tech Europe
Image Credits: Unsplash
TechMay 19, 2025 at 6:00:00 PM

Tech giants flatten management to speed up decision-making

[UNITED STATES] In a widespread effort to streamline operations, companies are increasingly cutting layers of middle management — a strategy known as "flattening...

Small Business Europe
Image Credits: Unsplash
Small BusinessMay 19, 2025 at 5:30:00 PM

Healing financial trauma in entrepreneurs

Financial trauma is an often invisible force shaping the decisions, growth, and well-being of entrepreneurs across the United States. Affecting more than two-thirds...

In Trend Europe
Image Credits: Unsplash
In TrendMay 19, 2025 at 5:30:00 PM

Secrets of Alcatraz

[WORLD] Once a fortress of fear and isolation, Alcatraz Federal Penitentiary has captivated the world for decades. But beyond the infamous escape attempts...

Culture Europe
Image Credits: Unsplash
CultureMay 19, 2025 at 5:00:00 PM

The rise of trade jobs in the Gen Z workforce

[UNITED STATES] Two years ago, John Smith sat down to complete the Common Application for college. Though he had always been a good...

Ad Banner
Advertisement by Open Privilege
Load More
Ad Banner
Advertisement by Open Privilege