E.U. Finds Meta’s Ad-Free Subscription in Violation of Competition Law

European Union Regulators Challenge Meta’s Subscription Option on Instagram and Facebook

Last year, Meta introduced a subscription option in the European Union that allowed users to pay for an advertising-free experience on Instagram and Facebook. The move was intended to address regulatory issues the company faced in the region, but it has now sparked new legal challenges.

On Monday, European Union regulators criticized Meta’s subscription, which costs up to 12.99 euros a month, as a “pay or consent” scheme. Users were required to choose between paying for an ad-free experience or providing more personal data to Meta for targeted advertising.

The regulators argued that this system did not offer users a true choice and violated the Digital Markets Act, a law aimed at curbing the power of tech giants like Meta. The law requires companies to allow users to opt out of having their personal data collected while still accessing a “less personalized but equivalent alternative” of the service.

Thierry Breton, the European commissioner involved in drafting the law, stated that Meta’s business model was in breach of the Digital Markets Act. He emphasized the importance of giving users control over how their data is used and ensuring fair competition in the tech industry.

In response, Meta defended its subscription service, stating that it complied with the law and expressing willingness to work with European regulators to address their concerns.

This development comes amidst a broader push by the European Commission to hold tech companies accountable for their practices. Meta could face significant fines if found guilty of violating the Digital Markets Act, highlighting the growing scrutiny of big tech in the region.

Meta is not the only company facing charges under the Digital Markets Act, as Apple also recently came under fire for unfair business practices related to the App Store. The outcome of these cases could have far-reaching implications for the tech industry in Europe and beyond.