Meta accused of violating EU tech rules on payment or consent model

Meta Platforms was accused by EU antitrust regulators on Monday of failing to comply with landmark technology rules by targeting the US company’s newly introduced paid or consented advertising model, already the target of ire from privacy regulators and activists.

The tech giant launched the ad-free subscription service for Facebook and Instagram in Europe last November, saying users who consent to being tracked will receive a free service funded by advertising revenue. Or they could pay for an ad-free service.

The European Commission, which acts as the EU’s competition enforcer, said the binary choice violates the bloc’s Digital Markets Act (DMA), which seeks to control the power of Big Tech, in sending its preliminary conclusion to Meta.

It stated that binary choice forces users to consent to the combination of their personal data and does not provide them with a less personalized but equivalent version of Meta’s social networks.

“We want to empower citizens to take control over their own data and choose a less personalized advertising experience,” EU antitrust chief Margrethe Vestager said in a statement.

Meta said its model complies with a ruling from Europe’s highest court.

“Ad-free subscription follows guidance from Europe’s highest court and complies with the DMA. We look forward to a more constructive dialogue with the European Commission to bring this investigation to a close,” said a Meta spokesperson.

Meta may adjust its advertising model to avoid a fine of up to 10% of its global annual revenue if found guilty of violations of the DMA. The Commission has until March next year to complete its investigation.

Activists and privacy watchdogs have also questioned Meta’s advertising model.

Reuters was the first to report that EU competition authorities would accuse Meta of non-compliance with the Digital Markets Act.

The charge against Meta came a week after the EU watchdog issued its first DMA charge against Apple for failing to comply with the new rule.

(Except the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)