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Currently, Facebook and Instagram users can choose to use the platforms for free by consenting to data collection, or pay a fee to not have their data shared. Under EU’s new rules, tech companies must obtain consent to merge or use personal data across different core service read more
 "After Apple, EU to investigate Meta for its ‘pay or consent’ data collection policy")
If Meta is found in breach of the DMA, it is looking at some significant penalties, including fines of up to 10 per cent of its global turnover and up to 20 per cent for repeated offences. Image Credit: Reuters
The European Union has taken action against Meta, Facebook’s parent company, for allegedly violating its new digital regulations, just a week after launching a similar case against Apple.
The EU’s executive body, the European Commission, is leveraging its new authority under the Digital Markets Act (DMA), legislation designed to enhance consumer choice and foster competition among European startups. Compliance with these rules has been mandatory since March.
In preliminary findings released on Monday, EU regulators expressed concerns about Meta’s “pay or consent” model.
Currently, Facebook and Instagram users can choose to use the platforms for free by consenting to data collection or pay a fee to avoid having their data shared. The regulators argue that Meta’s current model is very misleading NY design to confuse them, potentially coercing users into consenting to data tracking due to the financial burden of the alternative, as per a report by the Financial Times.
According to the EU’s new digital rules, tech companies must obtain user consent when they intend to merge or use personal data across different core services. This regulation came into effect in March when compliance investigations were initiated against Meta and other major tech firms.
The European Commission stated that Meta users who do not consent should still have access to an equivalent service that uses less of their personal data, particularly for ad personalisation.
Thierry Breton, the EU’s internal market commissioner, remarked that Meta’s “pay or consent” business model appears to violate the DMA. Breton also emphasised that the DMA aims to empower users to control their data usage and to ensure a level playing field for innovative companies against tech giants.
Meta responded with a statement asserting that its subscription model for ad-free usage aligns with the direction of Europe’s highest court and complies with the DMA. The company expressed its willingness to engage in constructive dialogue with the European Commission to resolve the investigation.
If Meta is found in breach of the DMA, it is looking at some significant penalties, including fines of up to 10 per cent of its global turnover and up to 20 per cent for repeated offences. The EU’s needs to finalise its preliminary findings in a year from the start of the official investigation in March.
Last Monday, the EU accused Apple of stifling innovation in its App Store, marking the first use of its new powers against a major tech company. Regulators expressed concerns about Apple’s restrictions on developers’ ability to direct customers to promotions outside its ecosystem. Apple has denied any wrongdoing.
The recent charges against Meta indicate that Brussels is committed to swiftly addressing alleged anti-competitive behaviour. An anonymous antitrust lawyer noted that Big Tech is a priority for the EU, acknowledging that traditional competition law enforcement has been slow and somewhat ineffective.
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English (US) ·