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By Swaleha | Published on April 25, 2025

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Technology / April 25, 2025

EU hits Apple and Meta with fines; Why US is angry about it

The U.S. has strongly criticized recent EU fines on Apple and Meta, calling them economic extortion. Here is all you need to know.

 

The European Union has recently fined Apple and Meta, which has triggered strong criticism from the United States. On April 23rd, the EU announced penalties of €500 million (roughly $570 million) for Apple and €200 million for Meta. These fines are the first major actions under the EU’s new Digital Markets Act (DMA), a law aimed at keeping powerful tech companies in check.

But the U.S. isn’t happy about it. The White House has called the fines a “novel form of economic extortion”, suggesting that the EU is unfairly targeting American companies under the guise of regulation, Reuters reported.

Why the EU fined Apple and Meta

Meta’s fine relates to how it handles user data and whether it gives users real choice about combining data across its services like Facebook and Instagram.

These actions, EU regulators argue, make it harder for smaller players to compete fairly — and that’s exactly what the DMA aims to fix.

At the heart of this issue is the Digital Markets Act, which came into effect to prevent dominant tech companies — often called “gatekeepers” — from using their size to block smaller competitors. According to the European Commission, Apple violated the DMA by restricting app developers from telling users about cheaper payment options outside its App Store and preventing the distribution of iOS apps through third-party platforms.

The U.S. Reacts

The American response has been unusually blunt. A White House spokesperson told reporters that these fines are not just about compliance — they’re political. The U.S. claims the EU’s new rules are “extraterritorial regulations” — laws applied to foreign companies in ways that may interfere with international trade. They also argue that this kind of regulation stifles innovation and undermines American businesses. The White House suggested that such penalties could strain economic relations and may even lead to U.S. trade actions in response.

However, Apple has already announced plans to appeal the decision, saying the ruling is unfair and harmful to user privacy and security. The company maintains that the App Store rules exist to protect users, not restrict developers. Meta, too, has indicated it will respond formally to the decision, though specifics are still emerging.

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