In a significant blow to Big Tech, the European Union has slapped a fine of over ₹6,600 crore on Apple and Meta (the parent company of Facebook) in a single go under the draconian new digital law. The move potentially alters how these companies do business not only in Europe but globally.
Meta has also been penalised by the EU, receiving a payment of $228 million (over ₹1,900 crore), and Apple paying a fee of $570 million (around ₹4,750 crore) according to Reuters.
These penalties mark the first major actions under the Digital Markets Act (DMA), a new law aimed at reducing the power of big tech platforms and helping smaller businesses and user rights.
The fine against Apple is based on its objections to what can be known as “sideloading,” downloading apps from outside the App Store. The EU claims Apple should let app developers provide cheaper choices and not try to coax users to stay in the Apple ecosystem.
Meta was found guilty of not allowing users to access services like Facebook, Instagram and WhatsApp with their personal data not comingled. Under the new law, that kind of merging of data between platforms would now violate user privacy.
The companies now have until December to comply or potentially face further penalties.
Why is this important?
- Consumer Rights: Users should be able to have greater control over their data and decide how they use apps and services.
- Fair Market: Smaller developers gain from less platform control like that of the big platforms such as Apple.
- Global Reach: Since this is an EU law, Apple and Meta may have to change things worldwide possibly affecting users in India as well.
- Escalating Tension: The decision could lead to increased tensions between the EU and the US government, which has criticized such measures against American companies in the past.
What the companies said
Apple said the decision is unfair and argued the E.U. is moving to compel it to make its technology available free of charge, which it said could undermine privacy as well as security.
Meta has said that the E.U. is “handicapping successful American businesses” while allowing Chinese and European companies to operate under different rules. It is one of the most aggressive moves any government has taken against tech giants. As Apple and Meta are gearing up to contest the fines, the E.U. is sending a message.
Even the biggest tech companies in the world must play by the rules of fair. For Indian users, this may be the start of a more open, safer, and consumer-friendly digital world.
- Also Read: 10 AI Predictions For 2025
For more information related to tech in easy Hindi-English, be with Hacking Bharat.
