Why Apple, Meta have been fined millions by EU
What's the story
The European Union (EU) has hit tech giants Apple and Meta with hefty fines for breaching its digital competition rules.
The European Commission, the EU's executive arm, slapped a €500 million fine on Apple.
The company was found guilty of preventing app developers from redirecting users to cheaper payment options outside its App Store.
Reason
Meta penalized for ad payment policy
Meta, the parent company of Facebook and Instagram, has been slapped with a €200 million fine by the European Commission.
The penalty comes as a result of Meta's policy that forced users of its platforms to choose between seeing ads or paying to avoid them.
These fines are part of the EU's continued efforts to enforce its digital competition laws more strictly across its 27 member states.
Regulatory framework
Fines under EU's Digital Markets Act
The fines were levied under the EU's Digital Markets Act (DMA), a broad set of rules designed to improve consumer and business choices. The DMA also aims to stop big tech companies from dominating digital markets.
Corporate reactions
Apple and Meta's response to fines
In response to the fine, Apple has accused the European Commission of "unfairly targeting" it.
The tech giant claims that it has "spent hundreds of thousands of engineering hours and made dozens of changes to comply with this law."
Meanwhile, Meta's Chief Global Affairs Officer Joel Kaplan criticized the Commission for allegedly trying to handicap successful American businesses, while allowing Chinese and European firms to operate under different standards.