The European Commission has issued fines totaling €700 million to U.S. tech giants Apple and Meta, marking the first enforcement actions under the Digital Markets Act (DMA). The penalties come amid heightened transatlantic tensions over digital regulation and trade.

Apple was fined €500 million for its App Store “steering terms,” which the Commission determined did not adequately allow app developers to guide users to alternative purchasing options outside Apple’s ecosystem. This followed a non-compliance notice issued in March 2023. Apple criticized the decision, arguing it undermines user privacy and product security, and confirmed plans to appeal. The company also claimed the ruling forces it to give away its proprietary technology.

Meta received a €200 million fine for its “pay or consent” model introduced on Facebook and Instagram in the EU in late 2023. The model requires users to either pay for ad-free service or consent to data usage for targeted advertising. The Commission had previously flagged this approach as non-compliant, asserting that it effectively coerces users into agreeing to the aggregation of their personal data.

Joel Kaplan, Meta’s Chief Global Affairs Officer, denounced the ruling as an unfair attempt to penalize successful American companies while giving European and Chinese competitors more leeway. In response, a Commission spokesperson stated that the EU’s enforcement is neutral with respect to company nationality.

Fines under the DMA are based on the severity, duration, and recurrence of violations, though officials acknowledged there is no established methodology for calculating them yet. Under the DMA, fines can reach up to 10% of a company’s global turnover. For context, Apple and Meta reported revenues of €342 billion and €143 billion respectively, making the fines imposed significantly below the allowable maximum.

Both companies now have 60 days to comply with the decisions or face further periodic penalties.

Despite the significance of the enforcement, the Commission opted to announce the fines via press release. Teresa Ribera and Henna Virkkunnen, the commissioners overseeing the DMA, were not present—Ribera is currently in Mexico, while Virkkunnen is touring an AI facility in Germany.

Earlier this year, the White House warned that the DMA’s implications for U.S. companies would be closely watched. While President Donald Trump has previously threatened retaliatory tariffs in response to EU actions against U.S. tech firms, Commission officials emphasized that the penalties are unrelated to trade policy and are solely about enforcing the DMA.