EU Accuses Meta Platforms of Violating Digital Markets Act

July 1, 2024

The European Union has charged Meta Platforms, the parent company of Facebook and Instagram, with breaching the Digital Markets Act by implementing a "pay or consent" advertising model. This model gives users the option to pay for an ad-free experience or consent to sharing personal data for targeted advertising. Regulators argue that this approach violates the new digital competition rules and does not provide users with a genuine choice. Meta introduced the subscription service as a response to regulatory scrutiny of its advertising-based business model, but it has faced criticism for forcing users to choose between paying for privacy and sharing personal data. The European Commission has taken aim at Meta's advertising model, stating that it does not give users the option to freely consent to the combination of their personal data from various Meta-operated sites. The company could face a fine of up to 10 percent of its global annual turnover for violating the Digital Markets Act. Meta has defended its subscription model, stating that it follows the direction of the highest court in Europe and complies with the DMA. The Commission is expected to conclude its investigation by March next year. This charge against Meta is part of a series of probes and actions taken by regulators and privacy watchdogs against the tech giant's advertising practices.

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