Tech
EU doubles down on Meta, says its ‘Pay or Consent’ model violates Digital Markets Act
The “pay or consent” offer made by Meta to Facebook and Instagram users in Europe has been found by the European Commission to be in violation of the Digital Markets Act (DMA).
The Commission claimed that instead of providing a free, less customized option, Meta’s strategy requires users to agree to data combining or pay for a membership.
According to reports, the DMA establishes stringent requirements to promote fair market competition and has been in effect for “gatekeepers” like Meta since March.
READ ALSO:Former Meta engineer sues company alleging wrongful job termination
Penalties for noncompliance might reach 10% of the firm’s yearly turnover, and 20% for recurring infractions. Additionally, Meta might have to change its business strategy, which depends on user data for customized advertising.
The commission’s investigation, according to Margrethe Vestager, Executive Vice-President in charge of competition policy, aims “to ensure contestability in markets” where big tech gatekeepers like Meta have been accumulating personal data of millions of EU citizens over time.
“Our preliminary view is that Meta’s advertising model fails to comply with the Digital Markets Act. And we want to empower citizens to be able to take control over their own data and choose a less personalized ads experience,” the official noted, according to the European Commission’s media release.
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