Apple fined for €500 million by EC, Facebook for €200 million

The European Commission has levied fines against both Apple and Facebook for violating the Digital Markets Act. Apple has to pay a €500 million fine, and Facebook a €200 million fine. Apple is breaking EU law by not allowing application developers to inform users of other offers outside the App Store.

The Commission found that Apple fails to comply with this obligation. Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store. Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers. The company has failed to demonstrate that these restrictions are objectively necessary and proportionate.
↫ European Commission press release

Not only is Apple ordered to pay the €500 million fine, they also have to remove any and all of the illegal restrictions they put in place.

Facebook, meanwhile, was fined for not offering an equally functional services but without combining user data from different services. The company did offer a choice between paying and not paying – whereby the latter involved data collection and combination – but this model violated the DMA.

The Commission found that this model is not compliant with the DMA, as it did not give users the required specific choice to opt for a service that uses less of their personal data but is otherwise equivalent to the ‘personalised ads’ service. Meta’s model also did not allow users to exercise their right to freely consent to the combination of their personal data.
↫ European Commission press release

Facebook did later amend their model to make it compliant with the DMA, and so the fine only covers the few months Facebook was violating EU law. Fun additional note: the EC also mentions that the Facebook Marketplace is no longer a gatekeeper service under the DMA, since its user numbers has dropped below the threshold. Facebook seems to be having some engagement issues in Europe, and you love to hear it.

Both companies are required to pay and comply within 60 days, or further periodic penalty payments will be levied.