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EU Finds Meta’s Ad-Free Subscription in Violation of Competition Law


European Union regulators have accused Meta of violating the Digital Markets Act with its subscription option that allows users to pay for an ad-free experience. The option, introduced last year in response to regulatory scrutiny, was seen as a way to address privacy concerns by giving users a choice between paying for privacy or allowing the collection of personal data for targeted advertising.

Regulators argue that Meta’s “pay or consent” scheme is coercive, forcing users to choose between paying a fee or surrendering their personal data. The Digital Markets Act aims to prevent tech giants like Meta from using their size to manipulate users into accepting terms they would otherwise reject.

Meta has defended its subscription service, stating that it complies with the law, but is willing to work with European regulators to address their concerns. If found guilty, Meta could face fines of up to 10 percent of its global revenue.

This is not the first time a tech company has faced charges under the Digital Markets Act, as Apple was also recently charged for unfair business practices related to the App Store. The European Commission has until March to complete its investigation into Meta’s practices.

Meta’s president, Nick Clegg, has criticized European regulatory complexity, stating that it hinders companies from rolling out new products in the region. The outcome of this investigation could shape the future of how tech giants operate in the European Union.

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Photo credit www.nytimes.com

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