Recently, the European Union imposed significant fines on two leading US tech giants, Apple and Meta. Apple faced a hefty €500 million fine, while Meta was fined €200 million.

These penalties are the result of particular business practices that have attracted scrutiny from regulators. These fines fall under the Digital Markets Act, which has empowered Europe to take a stronger stance against major technology companies.

Apple responded to the sanction by claiming it is being unfairly targeted by the European Commission. The company expressed concerns that the regulatory demands could jeopardize user privacy and security.

In a statement, Apple argued that the EU measures are detrimental to user privacy, the security of its products, and require the company to disclose its technology without compensation. The US White House has reacted to the EU’s fines on these American companies.

A spokesperson denounced the sanctions as a form of economic extortion, stating that the United States will not tolerate regulations that undermine American businesses. The spokesperson described these extraterritorial regulations as impediments to trade and threats to free civil society, echoing sentiments previously expressed by Vice President JD Vance and others in the Trump administration.

The reasons behind the fines are noteworthy. Apple was penalized for failing to meet obligations set by the EU regarding its App Store, particularly concerning allowing developers alternative payment methods.

Meta’s fine relates to its controversial “pay-or-consent” policy, requiring users to pay for privacy or otherwise consent to data tracking. EU antitrust chief Teresa Ribera expressed satisfaction with the outcomes, emphasizing that the Digital Markets Act aims to protect European consumers.

Both companies are expected to appeal the fines, and further developments are anticipated.