The European Commission has accused Meta of violating the new European rules of the Digital Markets Act because of its "pay or play" advertising model. This was reported by UNN with reference to the European Commission's decision.
Details
At the end of last year, Meta launched an ad-free subscription service that allows European Facebook and Instagram users to pay up to €12.99 per month for ad-free versions. The alternative is versions with personalized ads.
Nevertheless, the European Commission stated that this choice forces users to consent to the (use of) their personal data and does not provide them with a less personalized but equivalent version of Meta social networks.
The Commission believes that the proposed Meta model:
- Does not allow users to choose a service that uses less of their personal data, but is otherwise equivalent to a service based on "personalized advertising".
- Does not allow users to exercise their right to free consent to the combination of their personal data.
Meta now has the opportunity to exercise its right of defense by examining the documents in the Commission's file and providing a written response to the Commission's preliminary findings. The Commission will conclude its investigation within 12 months from the date of opening of the proceedings on March 25, 2024.
If the preliminary findings of the Commission's investigation are confirmed, the EU could impose a fine on Meta equivalent to 10% of its global annual revenue, i.e. billions of euros. Fines can reach 20% in case of repeated violations
If the preliminary findings of the Commission's investigation are confirmed, the EU could impose a fine on Meta equivalent to 10% of its global annual revenue , i.e. billions of euros. Fines can reach 20% in case of repeated violations.
Addendum
According to the Financial Times , Meta disagrees with the EC's decision. The company expects a constructive dialogue with EU representatives on this issue.
A subscription that allows for the removal of ads complies with the rules of the highest court in Europe and the DMA. We look forward to further constructive dialog with the European Commission to conclude this investigation
Recall
The European Commission suspects that Apple is "unlawfully suppressing competition" through its Apple Store app store. The company now faces a fine of up to 10% of its annual revenue.