EU Fines Apple and Meta, but Critics Say Penalties are Too Lenient
The European Commission’s recent decision to fine Apple and Meta for violating the Digital Markets Act has sparked criticism that the penalties are too lenient and fail to hold the tech giants accountable. According to a report by The Guardian, the fines imposed on the two companies are a fraction of what could have been levied under the act.
The Digital Markets Act, which aims to ensure a fair playing field for other companies, designates certain digital platforms as "gatekeepers" and imposes special obligations and constraints on them. Apple, which takes a significant cut of purchases made through its App Store, was found to have violated the act by preventing developers from directing customers to their own websites to avoid the "Apple tax". Meta, on the other hand, was fined for forcing Facebook and Instagram users to either consent to letting the company use their personal data or pay a monthly fee to remove ads.
The fines imposed on Apple and Meta are $570m (£430m) and $228m (£172m) respectively, which seem large but are relatively insignificant compared to the companies’ vast revenues. As The Guardian notes, Apple’s market cap is $3tn and it brought in $391bn in revenue in 2024, while Meta’s revenue was $164.5bn and it made a $62.4bn profit. In effect, the EU’s fines amount to a mere 46 hours of Apple’s annual profit and 28 hours of Meta’s.
The leniency of the fines has raised concerns that they will not deter tech companies from abusing their power in the future. As The Guardian points out, Meta has been hit with an €800m fine and a €1.2bn fine in the last two years alone, and Apple was handed a €1.8bn antitrust fine. These fines have had little impact on the companies’ behaviour, and critics argue that the EU’s latest penalties will have a similar effect.
The EU’s decision to soft-pedal on the fines has also been criticised for its potential political consequences. Voters are increasingly frustrated with the impunity that follows wealth, and the EU’s leniency may be seen as further evidence of this. As The Guardian notes, the 2008 financial crisis led to widespread anger and disillusionment with institutions and representative government, and the growth of far-right, populist movements.
The EU may have been attempting to avoid angering the Trump administration by handing down lenient fines to his allies, but this approach is misguided. In the long run, Europeans will benefit more from a competitive economy that allows the continent’s own tech companies to emerge and thrive, rather than one dominated by monopolistic big tech from the US. As The Guardian concludes, the EU’s failure to rein in powerful corporations will only perpetuate the perception that governments are not serious about holding them accountable.
Ultimately, the EU’s fines against Apple and Meta serve as a missed opportunity to demonstrate to voters what it means to actually take on powerful corporations. As The Guardian argues, the EU’s leniency will only embolden tech companies to continue abusing their power, and it is up to governments to take a firmer stance to protect the interests of citizens and promote a more competitive economy.
