Commission finds Apple and Meta in breach of the Digital Markets Act

Today, the European Commission found that Apple breached its anti-steering obligation under the Digital Markets Act (DMA), and that Meta breached the DMA obligation to give consumers the choice of a service that uses less of their personal data.

Therefore, the Commission has fined Apple and Meta with €500 million and €200 million respectively.

The two decisions come after extensive dialogue with the companies concerned allowing them to present in detail their views and arguments.

Non-compliance decision on Apple's steering terms

Under the DMA, app developers distributing their apps via Apple's App Store should be able to inform customers, free of charge, of alternative offers outside the App Store, steer them to those offers and allow them to make purchases.

The Commission found that Apple fails to comply with this obligation. Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store. Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers. The company has failed to demonstrate that these restrictions are objectively necessary and proportionate.

Non-compliance decision on Meta's "consent or pay" model

Under the DMA, gatekeepers must seek users' consent for combining their personal data between services. Those users who do not consent must have access to a less personalised 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 a choice between consenting to personal data combination for personalised advertising or paying a monthly subscription for an ad-free service.

The Commission found that this model is not compliant with the DMA, as it did not give users the required specific choice to opt for a service that uses less of their personal data but is otherwise equivalent to the 'personalised ads' service. Meta's model also did not allow users to exercise their right to freely consent to the combination of their personal data.

Today, the Commission also found that Meta's online intermediation service Facebook Marketplace should no longer be designated under the DMA. The decision follows a request submitted by Meta on 5 March 2024 to reconsider the designation of Marketplace. Following a careful assessment of Meta's arguments and as a result of Meta's additional enforcement and continued monitoring measures to counteract the business-to-consumer use of Marketplace, the Commission found that Marketplace had less than 10,000 business users in 2024. Meta therefore no longer meets the relevant threshold giving rise to a presumption that Marketplace is an important gateway for business users to reach end users.

Read the full press release.

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