synopsis

The European Commission, which is the executive body of the European Union, has also asked Apple and Meta to cease and desist from certain business practices.

Apple Inc. (AAPL) and Meta Platforms Inc. (META) are among the first Big Tech companies to face scrutiny by the European Commission under the Digital Markets Act.

While Apple has been hit with a $570 million fine, Mark Zuckerberg-led Meta has received a $228 million fine.

The fines come after a year-long investigation into the two companies’ operations and compliance with the Digital Markets Act.

The European Commission, which is the executive body of the European Union, has also asked Apple and Meta to cease and desist from certain business practices.

Apple has been asked to remove technical and commercial restrictions on the ability of app developers to inform users about alternative ways of buying digital products outside of Apple’s ecosystem.

The Digital Markets Act (DMA) was passed in 2022 as a means to make it easier for smaller companies to compete with big technology firms. Fines can extend up to 10% of the company's global revenue if found to be in violation of the DMA.

In an emailed statement to Reuters, Apple said it was “unfairly” targeted by the European Commission. Apple had earlier been forced to replace its Lightning charging port with a USB Type-C port, which is relatively more widely used.

"Today's announcements are yet another example of the European Commission unfairly targeting Apple in a series of decisions that are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free," Apple said.

Meta also criticized the decision, saying it was an attempt to “handicap successful American businesses.” It called the European Commission’s decision “effectively imposing a multi-billion dollar tariff” on the company.

However, Apple and Meta’s shares surged in pre-market trading on Wednesday amid a surge in the broader market.

While Apple’s stock was up 3.4%, Meta’s shares gained 5.6% at the time of writing.

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