The European Commission has charged Meta for violating the Digital Markets Act with its new “pay or consent” advertising model. The tech giant’s decision to offer a no-ads subscription service for Facebook and Instagram in Europe last November has come under scrutiny, as the EC believes this model does not give users the option to freely consent to the combination of their personal data from various Meta-operated sites.
The Commission found that Meta fails to provide users with a less personalized but equivalent version of the social networks if they choose not to consent to targeted advertising. This violates the DMA, which aims to empower citizens to take control over their own data and choose a less personalized ads experience.
If found guilty of violating the DMA, Meta could face a fine of up to 10 percent of its global annual turnover. The company has stated that the no-ads subscription follows the direction of the highest court in Europe and complies with the DMA.
This charge against Meta is part of a series of actions taken by the EC against Big Tech companies since the DMA came into force earlier this year. The Commission has also issued a charge against Apple for App Store rules, launched an investigation against Meta for child safety on its platforms, and named 22 “gatekeeper” services, including Meta and TikTok-owner ByteDance, that must comply with the DMA provisions.
Meta and TikTok have appealed against their gatekeeper status, with TikTok losing the bid in February. Apple has stated that it will engage with the EC to comply with the rules. The Commission has until March 2023 to wrap up its investigation into Meta’s advertising model.
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