The European Union today accused Meta of violating the Digital markets Act (DMA). Meta’s main accusation is related to the company’s “Pay or Consent” model, which was introduced to EU users in late 2023. In this model, to use meta platforms without ads, users must either subscribe or consent to their data being used for personalized ads. “Digital markets”
Under the EU’s DMA rules, tech giants such as Meta must obtain consent from users when they intend to use users’ personal data across platforms. Meta also launched a service in the European Union last year where users could use Facebook and Instagram without any ads by paying a monthly subscription.
At the time, the company announced that European users would receive free ad-free service if they consented to the use of their data. Now, according to CNBC, the European Union has accused Meta of violating DMA rules because of its “pay” or “satisfy” model. “Digital markets”
Meta accusation from the European Union
European regulators say the model proposed by Meta forces users to consent to the tracking of their personal data for advertising purposes in order to avoid paying subscription fees. The European Commission has now informed Meta of its “preliminary view” that the model does not comply with the DMA. Of course, Meta said earlier that this model does not violate DMA.
These findings are a continuation of the investigation that the European Commission started against Meta in March. Now with the announcement of the results of this investigation, Meta can respond to the charge of the commission and if it changes its model, it can probably avoid paying a fine.
However, if the commission’s opinion is upheld, it could fine Meta up to 10 percent of the company’s total turnover. Also, if this company is accused again, this fine may reach up to 20% of its total turnover. Meta’s total revenue last year was about 135 billion dollars (125 billion euros).
Last week, the European Commission announced that Apple’s policies and App Store terms violate the rules of digital markets.
