European Commission announces ‘multi-billion-dollar tariff’ on American tech companies

The European Commission fined Meta and Apple combined roughly $800 million in total Wednesday and ordered sweeping changes to their business practices under the bloc’s Digital Markets Act.

The Commission levied penalties of $566 million and $226 million against Apple and Meta respectively, marking the first enforcement action under the European Union’s landmark tech competition law. The move comes as Brussels enters delicate trade negotiations with the Trump administration, which previously characterized such fines as a “source of revenue for countries that have failed to cultivate economic success of their own.”

“Today’s decisions send a strong and clear message,” Teresa Ribera, EU commissioner for competitiveness, said in a press release. “The Digital Markets Act is a crucial instrument to unlock potential, choice and growth by ensuring digital players can operate in contestable and fair markets. It protects European consumers and levels the playing field. Apple and Meta have fallen short of compliance with the DMA by implementing measures that reinforce the dependence of business users and consumers on their platforms.”

Today, we’ve fined Apple and Meta for breaching the #DMA.

Apple restricts developers from informing customers about offers outside the App Store, while Meta doesn’t give consumers the choice of a service that uses less of their personal data.

More info: https://t.co/dhK04KI4sn pic.twitter.com/xxz7D56ohN

— European Commission (@EU_Commission) April 23, 2025

The Commission accused Apple of blocking app developers from informing users about cheaper offers outside its App Store, which regulators said harmed consumers and restricted competition. Meta was fined over its “consent or pay” model for Facebook and Instagram users in Europe — forcing users to either consent to having their personal data harvested for targeted advertising or pay a monthly subscription to access the platforms without ads. Such regulations on data collection do not exist in the U.S.

Meta confirmed it would appeal in a statement to the Daily Caller News Foundation. Apple also said they would appeal, according to multiple reports, but did not respond to the DCNF’s request for confirmation.

The penalties — nearly $800 million combined — are substantially lower than earlier EU fines for antitrust violations, such as its $4.8 billion fine against Google in 2018 over the alleged use of Android to cement the company’s search engine dominance. The Commission appears to have tempered the financial blow to avoid provoking President Donald Trump, who has already threatened a 20% reciprocal tariff on European goods and warned more could follow if Brussels maintains its aggressive posture toward American tech companies.

“Regulations that dictate how American companies interact with consumers in the European Union, like the Digital Markets Act and the Digital Services Act, will face scrutiny from the Administration,” a fact sheet for the president’s memorandum on the subject reads. “Rather than position their own companies and workers for success, foreign governments have been taxing the success of America’s companies and workers.”

Still, the EU’s message was clear: comply or pay.

Apple and Meta are required to comply with the Commission’s decisions within 60 days, otherwise they risk periodic penalty payments,” the EU press release says. “The Commission continues its engagement with Apple and Meta to ensure compliance with the Commission’s decisions and the DMA more generally.”

Meta countered that the EU is weaponizing regulation to “handicap” U.S. firms under the guise of consumer protection.

“The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies under the different standards,” Joel Kaplan, Meta chief global affairs officer, wrote in a statement. “This isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service.”

My statement on the European Commission’s blatantly discriminatory decision targeting Meta’s personalized ads business model: pic.twitter.com/evw4HVg1F3

— Joel Kaplan (@joel_kaplan) April 23, 2025

Similarly, an Apple spokesperson said the fines are “yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free,” in a statement to Reuters.

The Digital Markets Act, implemented in 2022, imposes a long list of obligations on so-called “gatekeepers” — Big Tech firms deemed dominant in the digital marketplace. Under the law, Apple must now allow alternative app stores and direct communication between developers and users. Meta, meanwhile, must overhaul its data monetization and advertising model or face further penalties.

The fines come amid increasing skepticism in Washington over Europe’s regulatory crusade. But while the Trump administration has blasted the EU for “extorting” American companies, it has simultaneously backed similar antitrust enforcement against Big Tech firms at home — continuing a Federal Trade Commission probe against Meta and two antitrust cases against Google over advertising tech and search dominance.

Additionally, Apple was forced to revise its U.S. App Store rules after a years-long battle with Epic Games, which resulted in a federal court ruling that found Apple’s anti-steering practices — the same conduct now under fire in Brussels — violated California competition law.

The administration’s focus on the EU also omits strikingly similar actions taken by U.S. allies in Asia. Japan enacted legislation in June targeting Apple and Google’s dominance over app stores and payment systems, while South Korea’s telecoms regulator found both firms guilty of anti-competitive behavior in 2021 and is still weighing millions in fines as of October, according to The Korea Times.

Still, the optics are hard for the White House to ignore. As the Commission touts its crackdown on U.S. tech, the Trump administration seemingly sees in Brussels a unique pattern of protectionist hostility cloaked in progressive legalese — and a lucrative way to generate revenue without taxing European voters.

Editor’s note: This article has been updated to reflect confirmation from Meta that it intends to appeal the fine.

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