The European Union’s efforts to establish fair competition in digital markets reached a pivotal moment on April 23, 2025, as the European Commission announced its first enforcement actions under the Digital Markets Act (DMA)[1]. Apple has been fined €500 million and Meta €200 million for failing to comply with their obligations as designated „gatekeepers”.[2] Meanwhile, Google (Alphabet) faces ongoing investigations for alleged violations of the same regulatory framework.[3] These actions mark a significant step in the EU’s ambitious agenda to ensure fair competition and user choice in the digital marketplace.
The Digital Markets Act: Regulating Digital Gatekeepers
The Digital Markets Act, which fully came into force on March 7, 2024, represents one of the most comprehensive attempts globally to regulate the power of large digital platforms. The DMA aims to ensure contestable and fair digital markets by imposing specific obligations on companies designated as „gatekeepers” – those providing core platform services with significant market power.
According to the European Commission, the DMA a pioneer regulatory tool for addressing the gatekeeping behavior by large digital platforms. It complements existing EU competition rules by establishing a set of predefined obligations and prohibitions that gatekeepers must follow, regardless of whether their practices would be illegal under traditional competition law.
Gatekeepers are designated based on specific criteria, including having a turnover of at least 7.5 billion euro in the European Economic Area for three years at least or a market capitalization of at least 75 billion euro and controlling core platform services with more than 45 million monthly active end users in the EU and more than 10,000 yearly active business in the EU.
As of September 2023, the European Commission had designated seven companies as gatekeepers: Alphabet (Google), Amazon, Apple, ByteDance (TikTok), Meta, Microsoft, and Booking.com. These companies were given six months to comply with the DMA’s requirements, with the original six gatekeepers facing a compliance deadline of March 6, 2024.
Apple’s €500 Million Fine: Anti-Steering Violations
The Commission’s decision against Apple centers on the company’s breach of „anti-steering” obligations under the DMA. According to the Commission’s findings, the DMA requires App developers who distribute their products through the Apple App Store ought to be able to notify users of free alternatives to the App Store, direct users to such offers, and enable purchases.
The investigation found that Apple failed to comply with this obligation by imposing restrictions that prevent app developers from fully benefiting from alternative distribution channels outside the App Store. As a result, consumers cannot fully benefit from potentially cheaper offers, as Apple prevents developers from directly informing consumers of such alternatives.
The Commission’s investigation highlighted that Apple’s restrictions prevented consumers from accessing more affordable or advantageous alternatives outside the App Store ecosystem. For instance, users were unable to be informed about or redirected to cheaper subscription options for services like Spotify or Netflix that are available via direct web sign-ups. Similarly, app developers offering educational tools, fitness programs, or creative software could not promote discounted bundles or free trial offers available only on their websites. Alternative payment solutions, such as PayPal or Stripe, were also not accessible through in-app prompts, limiting consumer choice and increasing transaction costs. These practices not only harmed consumer interests but also restricted developers’ ability to innovate and compete on price and features.
The fine of €500 million takes into account the gravity and duration of Apple’s non-compliance. Importantly, Apple has been ordered to „remove the technical and commercial restrictions on steering and to refrain from perpetuating the non-compliant conduct in the future”. The company has 60 days to comply with the Commission’s decision or risk additional periodic penalty payments.
Meta’s €200 Million Fine: The „Consent or Pay” Model
Meta’s fine stems from its controversial „Consent or Pay” advertising model, introduced in November 2023. Under this model, EU users of Facebook and Instagram were presented with a binary choice: either consent to the combination of their personal data for personalized advertising or pay a monthly subscription for an ad-free service.
The DMA requires gatekeepers to seek users’ consent for combining their personal data between services, with those who do not consent being provided access to a less tailored but equal alternative. The Commission determined that Meta’s model did not comply with this requirement, as it failed to give users the specific choice to opt for a service that uses less of their personal data while remaining equivalent to the personalized ads service.
In November 2024, Meta introduced a new version of its free personalized ads model, offering an option that allegedly uses less personal data for displaying advertisements. However, the Commission’s fine covers the period from March 2024 (when DMA obligations became legally binding) to November 2024 (when Meta introduced the new model). Like Apple, Meta has 60 days to comply with the Commission’s decision.
Google Under Investigation: Preliminary Findings of Non-Compliance
While not yet fined under the DMA, Google (Alphabet) is facing significant regulatory scrutiny. On March 19, 2025, the European Commission issued preliminary findings against Google, alleging two breaches of the DMA.
First, the Commission accused Google of effectively restricting app developers from steering users to alternative channels for better deals, violating the same anti-steering provisions that led to Apple’s fine. Second, regulators alleged that Google favors its own services, such as Google Shopping, Google Hotels, and Google Flights, over competitors in its search results.
According to The Register, Google is favoring its own services in search results and preventing app developers from directing customers to less expensive downloads and services outside the Play Store. Google has rejected these allegations, arguing that EU competition regulations are detrimental to both consumers and businesses, and that without the ability to charge reasonable fees, the company would struggle to invest in its open platform.[4]
Google has a history of confrontation with EU regulators. The company has previously been fined more than €8 billion for various antitrust violations over the past decade.[5] Most recently, on September 10, 2024, the European Court of Justice upheld a €2.4 billion fine against Google for abusing the market dominance of its shopping comparison service.[6] However, the company has had some successes in challenging EU penalties, winning a legal challenge against a €1.49 billion fine in September 2024.[7]
The EU’s Broader Regulatory Strategy
The DMA fines against Apple and Meta represent the latest chapter in the EU’s ongoing effort to regulate big tech companies. The European Commission has positioned itself as the global leader in digital market regulation.
The DMA works alongside other key EU digital regulations, such as the Digital Services Act (DSA), which focuses on content moderation and user safety. Together, they form what the European Commission calls the „Digital Services Act package”[8] – a single set of rules designed to create a safer, more open digital environment.
The impact of these regulations is already becoming apparent. According to data reported by Reuters, independent browsers saw a spike in users in the first month after the DMA regulations were implemented. For example, Cyprus-based Aloha Browser reported a 250% jump in EU users in March 2024.[9]
Implications and Future Outlook
Both Apple and Meta are required to comply with the Commission’s decisions within 60 days or face periodic penalty payments. For Apple, this means removing technical and commercial restrictions on steering, while Meta must address its approach to user consent for data combination.
The ongoing investigation into Google’s practices could result in similar fines. Under the DMA, non-compliant companies can be fined up to 10% of their global annual turnover, with repeat offenders facing penalties of up to 20%.
These enforcement actions are likely to have significant implications for how gatekeepers operate in the EU digital market. As companies adjust their business models to comply with the DMA, users may see changes in how services are delivered, how their data is handled, and what choices they have regarding digital platforms.
The consequences could be particularly significant for app developers and business users of these platforms. The DMA’s anti-steering provisions aim to give developers more freedom to communicate with users about alternative offers, potentially reducing their dependence on gatekeeper platforms and the associated fees. This could lead to more competition and innovation in app distribution and digital services.
Conclusion
The first DMA fines against Apple and Meta mark a watershed moment in digital regulation. By taking decisive action against these tech giants, the European Commission has demonstrated its commitment to enforcing the DMA and reshaping the digital market landscape.
With Google also facing preliminary findings of non-compliance, we can expect further enforcement actions in the coming months. The DMA’s impact extends beyond the immediate penalties, potentially influencing global standards for digital platform regulation. As enforcement continues, the tech industry faces a new era of regulatory accountability that could fundamentally alter how digital markets operate in the European Union and beyond.
Despite criticisms from the United States—where policymakers and industry voices have characterized the DMA as a form of digital trade barrier disproportionately affecting American tech companies—the European Commission appears undeterred. The recent enforcement actions suggest that the EU remains firmly committed to its broader regulatory strategy aimed at curbing digital market dominance within its borders. The Commission’s focus remains on enhancing user choice, reducing dependency on dominant platforms, and fostering a more competitive environment—prioritizing internal market fairness over external geopolitical pressure.
The Apple and Meta decisions represent just the beginning of what is likely to be a long-term process of reshaping the digital economy to ensure that it operates fairly for all participants – from the largest tech companies to the smallest app developers and individual users. The challenge for regulators will be to balance the need for effective enforcement with the goal of preserving innovation and growth in Europe’s digital sector.
[1] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2022.265.01.0001.01.ENG&toc=OJ%3AL%3A2022%3A265%3ATOC
[2] https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1085
[3] https://ec.europa.eu/commission/presscorner/detail/en/ip_25_811
[4] https://blog.google/around-the-globe/google-europe/the-eus-competition-rules-are-hurting-consumers-and-businesses/
[5] https://en.wikipedia.org/wiki/Antitrust_cases_against_Google_by_the_European_Union
[6] https://curia.europa.eu/jcms/upload/docs/application/pdf/2024-09/cp240135en.pdf
[7] https://curia.europa.eu/jcms/upload/docs/application/pdf/2024-09/cp240143en.pdf
[8] https://digital-strategy.ec.europa.eu/en/policies/digital-services-act-package
[9] https://www.reuters.com/technology/eus-new-tech-laws-are-working-small-browsers-gain-market-share-2024-04-10/
