Following the European Commission’s announcement that Apple would be fined $570 million and Meta $230 million for infringing DMA regulations, the US government has labeled this as “economic extortion.”
According to a Reuters report, a White House spokesperson stated: “This novel form of economic extortion will not be tolerated by the United States. Extraterritorial regulations that specifically target and undermine American companies, stifle innovation, and enable censorship will be recognized as barriers to trade and a direct threat to free civil society.”
The US government views these fines as a “development that could stoke tensions between the EU and the US,” especially considering that former President Donald Trump threatened to raise tariffs on countries penalizing American companies.
While the White House called the Digital Markets Act “discriminatory” legislation targeting American companies, the European Commission has investigated Apple and Meta for over a year to determine whether they were complying with the Digital Markets Act or abusing their power.
According to the ruling, Apple failed to inform users of alternative, free options besides the App Store. “Due to a number of restrictions imposed by Apple, app developers cannot fully benefit from the advantages of alternative distribution channels outside the App Store. Similarly, consumers cannot fully benefit from alternative and cheaper offers as Apple prevents app developers from directly informing consumers of such offers,” said the European Commission.
In addition to this hefty fine, Apple will need to implement several changes to its iPhone system in the coming months to comply with the new DMA legislation, which will take effect during the iOS 19 and iOS 20 cycles.
It’s unclear if the White House could plan new tariffs on the European Union. Fairly enough, the US Justice Department has also been investigating Apple, Meta, Alphabet, and many other big tech companies for being monopolies in their areas or infringing on legislation.
