Apple and Meta have been heavily fined 700 million euros for violating the EU's "Digital Markets Act." Is the use of encryption payments in the App Store not far away?

The European Commission announced yesterday (23) that for violating the EU's Digital Markets Act (DMA), the EU announced fines of 500 million euros (about $570 million) and 200 million euros (about $228 million) on Apple and Meta respectively, and required the two companies to immediately adjust their business practices to comply with the rules of technology competition. (Synopsis: U.S. regulators focus on Microsoft's large-scale antitrust investigation, in-depth cooperation OpenAI will change? (Background added: Zuckerberg is finished!) Antitrust settlement failed "FTC to fine $30 billion", WSJ: Meta only wants to pay 450 million magnesium, which even IG can't afford) According to foreign media such as Bloomberg, the European Commission announced on April 23, 2025 that the European Union announced a fine of 500 million euros (about $570 million) and 200 million euros (about $228 million) for Apple and Meta for violating the EU's Digital Markets Act (DMA), respectively. The two companies are also required to immediately adjust their business practices to comply with the rules of technological competition. Apple, Meta both violate the Digital Markets Act The European Union officially enacted the Digital Markets Act in November 2022, which came into effect in May 2023, to regulate large technology companies listed as "gatekeepers" (such as Apple, Meta, Google, Amazon and other giants) and require them to comply with stricter codes of conduct to prevent abuse of market power, promote competition among small and medium-sized enterprises, and protect consumer choice. In this penalty, the EU found that Apple's App Store policy violated the DMA's "anti-steering" obligation because Apple restricted the freedom of app developers to inform users about alternative services or cheaper trading channels outside the App Store, and prohibited developers from entering into contracts directly with users. The EU argues that the move prevents consumers from accessing more cost-effective options while restricting developers' commercial freedom. In addition to the fine, Apple is required to remove technical and commercial restrictions on app developers within 60 days, allow them to freely direct users to alternative trading channels, and stop the violations, or face further regular fines. Apple currently forces users to use "in-app purchases" (In-App Purchase), for digital goods and services sold within the app (e.g., game virtual currency, subscription services, unlocking premium features, digital content, etc.), developers must use the IAP system provided by Apple to transact. This means that the transaction money will first flow to Apple, which will then take a percentage of the commission and pay the developer. In the future, if Apple does gradually relax or even remove these restrictions, especially in "directing users to alternative payment channels", perhaps the day when we use cryptocurrency to make payments in the App Store is not far away. Meta, for its part, was fined for its "pay-or-consent" model. This model requires users of Facebook and Instagram, part of Meta, to consent to the use of personal data for targeted advertising or to pay a monthly fee for an ad-free experience. The EU believes that this model does not give users real data choices, which violates the DMA's requirements for user privacy protection, and also requires Meta to adjust its advertising model within 60 days to ensure that users can choose not to provide personal data service options. It is worth mentioning that this fine is the first major enforcement action against Apple and Meta after the DMA took effect. Teresa Ribera, the head of EU antitrust, stressed that the enforcement action is not affected by US President Trump's tariff threat, and the EU's position on the regulation of technology giants remains firm. However, the fine is actually relatively mild, as it is much lower than the maximum penalty imposed by the DMA (10% of annual global revenue or 20% for repeat violations), partly reflecting the EU's attempt to strike a balance between enforcement and easing US-EU trade frictions. Apple announced that it will appeal Although both companies received fines from the European Union, on the day the fine was announced, the stock prices of the two companies were not affected, but rose to a certain extent, for which some analysts pointed out that the amount of the fine is insignificant compared to the annual revenue of the two companies, and the market has digested this fine expectation in advance. In addition, Apple also protested the fine, saying it would appeal the fine, arguing that the EU "unfairly" targeted its business, compromised user privacy and product security, and forced it to share technology for free; Similarly, Meta has criticized EU law enforcement for favoring European and Chinese competitors, to the detriment of U.S. companies. Finally, netizens also had mixed opinions on this matter, with some users praising the EU for "finally getting tough" and taking action against American technology giants; But some users question whether the fine is enough to change corporate behavior, or is it only a symbolic measure. Other commentators are concerned that fines could exacerbate the US-EU trade dispute, especially under the pressure of the Trump administration's tariff policy. 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