Meta's Pay or Consent Model Under Scrutiny for Violating EU Tech Rules
Meta Platforms charged by EU antitrust regulators for breaching tech rules. Binary choice of pay or consent advertising model under scrutiny. European Commission argues the model fails to provide a less personalised alternative.
The charges specifically target Meta's recently introduced pay or consent advertising model, which has already drawn criticism from privacy regulators and activists.
The tech giant launched a subscription service in Europe last November, offering users a choice: consent to being tracked and receive a free service supported by advertising, or pay for an ad-free experience. However, the European Commission, acting as the EU competition enforcer, argues that this binary choice violates the bloc's Digital Markets Act (DMA), which aims to curb the power of Big Tech.
According to the Commission's preliminary findings, the binary choice forces users to consent to the combination of their personal data and fails to provide them with a less personalised but equivalent version of Meta's social networks. Margrethe Vestager, the EU antitrust chief, emphasised the importance of empowering citizens to have control over their own data and choose a less personalised ads experience.
In response, Meta defended its advertising model, stating that it complies with a ruling from Europe's top court and the DMA. A spokesperson for Meta expressed willingness to engage in constructive dialogue with the European Commission to resolve the investigation.
If found guilty of breaching the DMA, Meta could face a fine of up to 10% of its global annual turnover. The Commission has until March of next year to conclude its investigation and make a final decision.
Privacy activists and watchdogs have also raised concerns about Meta's advertising model. Reuters was the first to report that the EU competition enforcer would charge Meta with non-compliance under the Digital Markets Act. This charge comes just a week after the EU watchdog issued its first DMA charge against Apple for similar reasons.
Meta Platforms charged by EU antitrust regulators for breaching tech rules
Binary choice of pay or consent advertising model under scrutiny
European Commission argues the model fails to provide a less personalised alternative
Source: REUTERS