Trump's Team Blasts EU's Nearly $800 Million Fine On Apple And Meta As 'Extortion' — Could US Retaliate Against The Digital Markets Act?

The European Union’s first major enforcement of its sweeping Digital Markets Act has sparked political backlash in Washington — and could ignite a new front in U.S.-EU trade tensions.

What Happened: On Wednesday, the European Commission fined Apple Inc. (NASDAQ:AAPL) €500 million (approximately $540 million) and Meta Platforms, Inc. (NASDAQ:META) €200 million (about $216 million), accusing the tech giants of violating the bloc's new antitrust regulations aimed at curbing digital dominance.

In a statement first spotted by Politico, Meta's global affairs chief Joel Kaplan argued the fine and the mandated changes to Meta's ad model "effectively impose a multi-billion-dollar tariff on Meta while requiring us to offer an inferior service."

In a statement to the publication, Apple called the decision "bad for the privacy and security of our users," adding that the DMA forces it to "give away our technology for free."

See Also: Mark Zuckerberg Defends Meta In FTC Trial Over $6 Billion Offer To Acquire Snapchat: ‘We Would Have Accelerated Their Growth’

Kay Hazemi-Jebelli, senior director for Europe at the Chamber of Progress, said that the fines against Apple and Meta should serve to draw the U.S. administration's attention squarely to the Digital Markets Act.

Just hours after the fines were announced, the National Security Council under President Donald Trump responded forcefully, the report noted.

Spokesperson Brian Hughes labeled the EU's move "a novel form of economic extortion," adding, "Extraterritorial regulations that specifically target and undermine American companies… will not be tolerated by the United States."

Katie Harbath, a former public policy director at Meta, told the publication that Kaplan's reference to "tariffs" was a clear attempt to link the EU's tech regulations to Trump's broader 2025 trade agenda.

She added that the White House is unlikely to take serious action unless the EU expands its enforcement to include more tech companies like Elon Musk's X, which notably avoided penalties on Wednesday.

Why It's Important: The penalties are the first issued under the DMA, a 2022 law that took effect in March 2024, targeting so-called "gatekeepers" like Apple, Meta, and other large platforms accused of unfair business practices in Europe.

Apple and Meta now have 60 days to comply with the EU's decisions and modify their business practices, or they risk facing further recurring fines.

Price Action: On Wednesday, Meta shares rose 4%, closing at $520.27, while Apple stock climbed 2.43% to $204.60, according to Benzinga Pro data.

Meta currently holds a momentum rating of 46.05% and a growth rating of 74.99%, based on Benzinga Edge Stock Rankings. Click here to see how it stacks up against Apple and other leading companies.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.