Meta labels EU digital fines a ‘tariff’ on American firms

Social media giant Meta said that fines handed down by the European Commission Wednesday for violation of its Digital Markets Act are "a multi-billion-dollar tariff " on Meta and an attempt to “handicap” successful American firms.

The Commission slapped tech giants Apple and Meta with penalties for breaching the EU’s new digital rulebook. Apple faces a €500 million fine for breaking the regulation’s rules for app stores, while Meta drew a penalty of €200 million for its “pay or consent” advertising model.

"The European Commission is attempting to handicap successful American businesses while allowing Chinese and European companies to operate under different standards,” Meta’s Chief Global Affairs Officer, Joel Kaplan, said in a statement shared shortly after the Commission’s announcement.

“This isn’t just about a fine; the Commission forcing us to change our business model effectively imposes a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service,” Kaplan said. The company said it will appeal the decision.

His words echo recent statements by the head of the U.S. Federal Trade Commission Andrew Ferguson, who called DMA rules "a tax on American firms."

Apple also reacted to the fines, saying the Commission’s decisions “unfairly” target the company. The decisions “are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free,” spokesperson Emma Wilson said in a statement.

Apple will appeal the decision, Wilson said, “and continue engaging with the Commission in service of our European customers.”

EU competition chief Teresa Ribera said that the EU has taken "firm but balanced enforcement action against both companies, based on clear and predictable rules." She added: "All companies operating in the EU must follow our laws and respect European values."

UPDATED: This article has been updated to confirm that Meta will appeal the Commission's decision.