EU antitrust regulators charged Meta Platforms for violating landmark tech rules with its new pay or consent advertising model, introduced last November for Facebook and Instagram users in Europe, which offers a no-ads subscription service. Users can either consent to track for a free service funded by ads or opt for a paid ad-free version.
The European Commission, the EU’s competition enforcer, argues that this binary choice contravenes the Digital Markets Act (DMA), aiming to curb Big Tech’s power. According to the Commission, the model coerces user consent for personal data combinations and does not offer an equivalent, less personalized service option.
EU antitrust chief Margrethe Vestager emphasized the intent to allow citizens to control their data and opt for less personalized ads.
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Meta responded, asserting that its model adheres to a ruling from Europe’s top court and is in line with the DMA. “Subscription for no ads follows the direction of the European highest court and complies with the DMA. We look forward to further constructive dialogue with the European Commission to bring this investigation to a close,” stated a Meta spokesperson.
If the company breaches the DMA, it could modify its advertising approach to avoid a fine that could reach up to 10% of its global annual revenue. The Commission has set a deadline of next March to conclude its investigation.
The model has also faced criticism from privacy activists and watchdogs.
Reuters initially reported that the EU competition enforcer would charge Meta with non-compliance under the Digital Markets Act. This charge follows the EU watchdog’s similar action against Apple for failing to comply with the new regulation.
