EU accuses Meta of breaching digital laws with new "pay or consent" model by not providing alternatives

From Nasdaq: 2024-07-01 13:30:17

The European Commission accuses Meta Platforms Inc. of breaching EU digital laws with its “pay or consent” advertising model on Facebook and Instagram that charges users for ad-free versions. The Commission believes this model fails to comply with the Digital Markets Act.

Meta’s “pay or consent” model offers users the choice to pay for an ad-free experience or have their data used for personalized ads. However, the Commission finds that this binary choice violates the DMA by not providing a less personalized but equivalent service for users who do not consent.

To comply with the DMA, Meta must offer users who do not consent access to an equivalent service that uses less of their data. The Commission’s preliminary findings inform Meta of its breach without prejudicing the outcome of the investigation.

Margrethe Vestager, Executive Vice-President in charge of competition policy, emphasizes that the investigation aims to empower citizens to have more control over their data and choose a less personalized ads experience. The goal is to ensure contestability in markets where gatekeepers like Meta have accumulated personal data over many years.



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