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The European Union said on Monday that Meta's "pay or consent" advertising model violated new digital competition laws, and Apple and Microsoft were also punished.
The EU said Meta's policy "forces users to consent to the merger of their personal data and fails to provide them with a less personalized but equivalent version of Meta's social network" and is inconsistent with the Digital Markets Act. Meta created a "pay or opt-in" model in response to EU regulatory changes that allow Facebook and Instagram users in Europe to choose between a paid ad-free version or a free version with customized ads. But the EU found that this was not enough because it "does not allow users to sign up for services that use less personal data but are otherwise equivalent to services based on 'personalised advertising'". If the commission ultimately finds that Meta violated the DMA, the company could be fined up to 10% of its global revenue. A fine of up to 20% can be imposed for repeated violations of the law. After the regulatory agency began investigating a number of technology companies to comply with the DMA, the final decision had to be made.
Consterethe Westager, Vice -President of Competition Policy, said in a statement: "The purpose of our investigation is to ensure that people like throwing have accumulated millions of EU citizens' personal data for many years." «Our initial opinion is that Meta's advertising model does not comply with the Digital Markets Law. We want to empower citizens to control their data and choose a less personalized advertising experience.
The European Union last month accused Apple of flouting laws that prevent app developers from freely directing consumers to alternative purchasing options. It also said in June that Microsoft was breaking the law by including Teams in its Microsoft 365 package — even if consumers don't have a service plan — or by providing a free one-year trial of the Office 365 service, Microsoft harming competition.
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