The Decisions in a Nutshell
On the 23rd of April 2025, the European Commission (the ‘Commission’) fined Meta and Apple for non-compliance under the Digital Markets Act (DMA). Both Meta and Apple are considered as ‘gatekeepers’ under the DMA, which identifies large digital platforms that offer essential services, such as online search engines, app stores, and messenger services. The main goal of the DMA is to guarantee that digital platforms, including social networks, advertising services, and mobile app stores, operate in a fair and competitive manner for both users and businesses.
In March 2024, the Commission started investigating Apple's App Store rules on “steering” and Meta's “pay or consent model” for non-compliance. The fines imposed on Apple and Meta mark the first non-compliance rulings in accordance with the DMA. Both gatekeepers were given 60 days to comply with the rulings.
Key Legal Issues
- Enforcement of the DMA on Gatekeepers
- EU Commission Rulings based on the DMA
Apple’s non-compliance due to “steering” terms
The Commission has fined Apple €500 million for failing to comply with the DMA. Under the DMA, app developers must be allowed to inform users about alternative offers outside the App Store and enable external purchases, which are either more cost-efficient or free of charge. However, Apple imposed restrictive measures preventing developers from directing users to alternative options, limiting consumer access to more affordable alternatives. The Commission found these restrictions unjustified and ruled that Apple’s actions hinder fair competition. Apple has now been ordered to remove both technical and commercial barriers to “steering” and avoid any similar practices going forward. This decision reinforces the DMA’s aim of ensuring a fairer digital market and a larger pool of options for consumers across the European Union (EU).
Meta’s ‘Pay or Consent’ use model
Meta was also fined €200 million by the Commission for violating the DMA between March and November 2024. During this period, Meta offered European users of its main social media platforms Facebook and Instagram a binary "Consent or Pay" model; wherein users either accept personalized ads using combined personal data or pay for an ad-free experience. The Commission found this model non-compliant, as it did not offer a less data-intensive, yet equivalent, free alternative. In November 2024, Meta introduced a revised ad model claiming to use fewer personal data, which is currently under review.
Separately, the Commission retracted its position that Facebook Marketplace is considered as a regulated service, due to its number of users. This means that Marketplace does no longer fall within the remit of the DMA.
Implications of the Commission’s Decisions
In summary, the European Commission's recent decisions under the DMA represent a pivotal moment in the regulation of digital markets, with far-reaching implications for competition, consumer rights, and international regulatory dynamics. These actions, targeting Apple and Meta, are the first major enforcement measures under the DMA and set important precedents for the regulation of digital "gatekeepers."
