The European Commission has taken a firm stance against Facebook owner Meta’s new “pay or consent” advertising model, stating that it is in breach of EU laws. Under this new service, users in the EU must either agree to receive personalized ads or pay €12.99 a month to opt out of them.
Meta, however, argues that its advertising model is compliant with the Digital Markets Act (DMA) and follows the direction of the highest court in Europe. The tech giant could face a potential fine of up to 10% of its global revenue if the EU determines that it has failed to comply with its rules.
This development comes shortly after EU regulators accused Apple of violating the same laws over its App Store, marking the first time a company has been found in breach of the DMA. Joe Jones of the International Association of Privacy Professionals (IAPP) noted that the EU’s digital regulatory framework is moving swiftly and decisively.
Meta, designated as a “gatekeeper” under the EU’s rules, faces stricter obligations compared to other tech firms. The company’s “pay or consent” model has raised concerns among European data watchdogs, with the European Data Protection Board (EDPB) emphasizing the importance of offering users a genuine choice.
The Commission’s executive vice-president, Margrethe Vestager, emphasized the need to empower citizens to control their own data and choose a less personalized advertising experience. The investigation into Meta’s advertising model aims to ensure a level playing field in the digital advertising market and protect the rights of EU citizens.
As the EU continues to scrutinize big tech companies, Meta’s future in the European market remains uncertain. The Commission aims to conclude its investigation within the next 12 months, signaling a proactive approach to enforcing digital regulations.
