EU Imposes Record Fines on Apple (€500M) and Meta (€200M) for App Store and Privacy Rule Violations

The European Commission has hit two of Silicon Valley's biggest giants with hefty penalties. Apple faces a €500 million fine for App Store restrictions, while Meta Platforms must pay €200 million over its “Consent or Pay” ad model.

EU Fines Breakdown

• Apple (NASDAQ:AAPL): €500 million

• Meta Platforms (NASDAQ:META): €200 million

• Date Announced: Wednesday, by the European Commission

Apple's App Store Restrictions

• Violation: Blocked developers from informing users about cheaper, direct-purchase options outside the App Store.

• Impact on Developers: Unable to “fully benefit from alternative distribution channels.”

• Consumer Harm: Users deprived of “alternative and cheaper offers” due to in-app communication bans.

Meta's “Consent or Pay” Advertising Model

• Violation: Failed to offer an “equivalent,” low-data-use service option alongside personalized ads.

• User Choice: Lacked the “specific choice” to consent freely to data combination or switch to a data-light alternative.

• Data Rights: Did not properly enable Europeans to exercise their GDPR-consent rights.

Implications and Next Steps

• Regulatory Trend: Signals tougher EU enforcement on Big Tech's platform rules and data practices.

• Appeal Process: Both companies are likely to contest the fines, extending the legal battle.

• Wider Impact: Could spur similar actions on app stores and ad models globally, reshaping digital marketplaces.

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These record EU fines highlight escalating scrutiny on how platforms govern apps and handle personal data—setting a precedent that could ripple across the global tech sector.