The European Commission’s newly announced fines of €500 million against Apple and €200 million against Meta for alleged violations of its Digital Markets Act undermine key aspects of both online ecosystems. To make matters worse, they are also almost certain to exacerbate tensions with a notoriously trigger-happy U.S. administration.

The commission claims Meta’s “consent or pay” advertising model, which lets users either consent to personalized ads or pay monthly fees starting from €5.99 for an ad-free experience, violates the Digital Markets Act because users are not offered a “truly equivalent and free” alternative to personalized ads.

Apple, for its part, is accused of hampering alternative app distribution channels outside of its App Store. This matters for downstream rivals like Epic Games and Spotify, for whom Apple’s App Store fees are a significant cost of doing business.

Even on their own terms, these decisions are of dubious merit. In Meta’s case, personalized ads aren’t some nefarious trick to exploit users; they are the engine that powers most free online services. Tailoring ads to user interests makes advertising far more efficient. Estimates suggest that personalization typically drives a 10 to 15 percent

© The Hill