European Union regulators have accused Meta of violating the bloc’s new competition law by requiring Instagram and Facebook users to pay if they do not want their personal data used for targeted ads. The preliminary findings are part of an investigation into whether Meta is compliant with the European Union’s Digital Markets Act, which could lead to fines of up to 10 percent of its annual revenue. The EU argues that Meta’s pay-or-consent model does not give users the right to freely consent to the use of their personal data and does not offer an equivalent service using less personal data as required by the DMA.
Meta has defended its “subscription for no ads” model as complying with the DMA and is looking forward to a constructive dialogue with the European Commission to resolve the investigation. The DMA, which came into effect in March, aims to prevent big internet companies from abusing their market power. However, critics warn that overregulation could stifle innovation in the sector.
Since the DMA took effect, the EU has opened probes into Meta, Apple, and Alphabet, with a deadline of one year for the investigations to be completed. Meta had introduced the pay-or-consent option for ads in the EU market in an attempt to show compliance with the DMA, but regulators remain unconvinced. The EU has also informed Apple and Microsoft that their business practices may be in violation of antitrust rules. This ongoing investigation highlights the EU’s efforts to regulate big tech companies and protect consumer data privacy rights.
Source
Photo credit www.washingtonpost.com
