The European Commission has formally accused Meta, the parent company of Facebook and Instagram, of violating the European Union’s Digital Markets Act (DMA) with its controversial ‘pay or consent’ advertising model. This model, introduced in November 2023, requires users to either pay a monthly subscription fee for an ad-free experience or consent to personalized advertising based on their data.According to the Commission, Meta’s approach does not comply with the DMA, which mandates that users have the right to ‘freely consent’ to the use of their personal data for targeted advertising. The EU argues that Meta’s model forces users into a binary choice, depriving them of a less personalized but equivalent version of its social networks.Margrethe Vestager, Vice-President of the European Commission responsible for Competition, stated, ‘Our preliminary opinion is that Meta’s advertising model does not respect the Digital Markets Act. We want to empower citizens to take control of their own data and choose a less personalized advertising experience’.If the charges are confirmed, Meta could face severe financial penalties. The Commission has the authority to impose fines of up to 10% of Meta’s global annual revenue, which could amount to billions of euros. For repeat offenses, this penalty could increase to 20%.Meta has been given the opportunity to defend itself by examining the documents and submitting written arguments. The company maintains that its ‘Subscription for no ads’ model complies with the DMA and looks forward to further dialogue with the European Commission.The investigation must conclude by March 25, 2025. This case represents a significant test of the EU’s ability to enforce its new digital market regulations and could have far-reaching implications for how tech giants operate within the European Union.
Key points
- The European Commission has accused Meta of violating the Digital Markets Act with its ‘pay or consent’ model.
- Meta could face fines of up to 10% of its global annual revenue if found guilty.
- The investigation must conclude by March 25, 2025, with Meta given the opportunity to defend itself.
Contradictions👾While most sources report on the Digital Markets Act, one source mentions the Digital Services Act instead, which appears to be an error.
👾The exact amount of the potential fine varies slightly between sources, with some specifying 10% of global annual revenue, while others mention up to 20% for repeat offenses.
