Today, the European Commission found that Apple violated its anti-steering obligation under the Digital Markets Act (DMA), and that Meta violated the obligation to provide consumers with a choice of a service that uses less personal data. Consequently, the Commission has fined Apple and Meta €500 million and €200 million respectively.
The decisions follow extensive dialogues with the involved companies, allowing them to present their views and arguments.
Non-compliance decision on Apples steering terms
Under the DMA, app developers distributing their apps via Apples App Store should be able to inform customers, free of charge, of alternative offers outside the App Store and steer them to those offers.
The Commission found that Apple does not comply with this obligation. Due to several restrictions imposed by Apple, app developers cannot fully benefit from alternative distribution channels outside the App Store. Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents developers from directly informing consumers about such offers.
As part of todays decision, the Commission has ordered Apple to remove the technical and commercial restrictions on steering and refrain from perpetuating non-compliant practices in the future.
The fine takes into account the gravity and duration of the non-compliance.
Today, the Commission also closed the investigation into Apples user choice obligations, thanks to Apples early and proactive engagement on a compliance solution. More information on these decisions can be found here.
Non-compliance decision on Metas “consent or pay” model
Under the DMA, gatekeepers must seek users consent for combining their personal data across services. Those who do not consent must have access to a less personalized but equivalent alternative.
In November 2023, Meta introduced a binary ‘Consent or Pay advertising model. Under this model, EU users of Facebook and Instagram had the choice between consenting to data combination for personalized advertising or paying a monthly subscription for an ad-free service.
The Commission found this model non-compliant with the DMA, as it did not give users the required specific choice for a service that uses less personal data.
In November 2024, Meta introduced a new version of the free personalized ads model, offering an option that purportedly uses less personal data. The Commission is currently assessing this new option and continues dialogue with Meta.
The fine imposed on Meta also considers the gravity and duration of the non-compliance, noting that todays decisions against Apple and Meta are the first non-compliance decisions adopted under the DMA.
Today, the Commission also determined that Metas online intermediation service Facebook Marketplace should no longer be designated under the DMA.
Next Steps
Apple and Meta are required to comply with the Commissions decisions within 60 days, otherwise, they risk periodic penalty payments.
The Commission continues to engage with Apple and Meta to ensure compliance with the Commissions decisions and the DMA in general.
Background
On 25 March 2024, the Commission opened non-compliance investigations into Apples rules on steering in the App Store and Metas “pay or consent model”.
Apple and Meta had the opportunity to exercise their rights of defense and respond comprehensively to the Commissions preliminary findings. The Commission can fine non-compliant companies up to 10% of their global annual turnover.
For more information and the latest news on the DMA, please check the Commission website.