EU fines Apple and Meta under Direct Marketing Act

But it could have been a lot worse for both companies.

Transcript

00:00For the first time since its inception, the European Union has levied fines for breaching

00:04its Digital Markets Act. The culprits, according to the European Commission, are Apple and Meta,

00:09which have been fined a combined $797 million. Meta was hit with a $570 million fine because

00:16the Commission found that, for a period of time, users weren't given the option of using free

00:21versions of the company's various platforms. Meta, of course, disagrees with the decision,

00:26saying, quote, this isn't just about a fine. The Commission forcing us to change our business

00:30model effectively imposes a multi-billion dollar tariff on Meta while requiring us to offer an

00:36inferior service. Apple, meanwhile, will cough up roughly $300 million for violations stemming from

00:42how app developers communicate with users within its app store. However, it seems the two tech

00:47giants got off easy. The DMA stipulates it can fine a company up to 10% of its annual global revenue for

00:53a first offense. Meta's revenue totaled $164 billion last year, while Apple brought in nearly $400

00:59billion. That'll do it for your daily briefing. From New York City, I'm Lauren Torres with The Street.