Meta Platforms faced charges from EU antitrust regulators on Monday for non-compliance with significant tech regulations. The charges specifically targeted Meta’s newly introduced pay or consent advertising model, which has already drawn criticism from privacy regulators and activists.
Meta introduced a no-ads subscription service for Facebook and Instagram in Europe last November. Users who consent to be tracked receive a free service funded by advertising revenues, while alternatively, they can pay for an ad-free experience.
The European Commission, acting as the EU’s competition enforcer, accused Meta of breaching the Digital Markets Act (DMA).
Their preliminary findings highlight that Meta’s binary choice model, requiring users to consent to the amalgamation of their data, violates the regulations.
Furthermore, the commission noted that Meta fails to provide an alternative version of its social networks that offers less personalization but equivalent functionality.
Meta has the opportunity to adjust its advertising approach to avoid a potential fine of up to 10% of its global annual turnover if found in violation of DMA regulations. The European Commission aims to conclude its investigation by March next year.
Privacy activists and watchdogs have also criticized Meta’s advertising model for its implications on user privacy.