Meta CEO Mark Zuckerberg received concerning news from the EU on Monday. The European Commission announced that Meta’s advertising model, known as “pay or consent,” is breaching the EU’s Digital Markets Act. This is not the first time a tech giant has been accused of violating this rule, as Apple also faced similar allegations.
The EU regulators expressed their disapproval of Meta’s advertising model, which was introduced in 2023 after a previous ruling mandated that users should have the option to opt out of personalized ads based on their social media activity. The “pay or consent” model requires users to pay a monthly fee to avoid ads on Facebook and Instagram or agree to receive personalized ads in order to use the free version of the platforms.
Mark Zuckerberg’s Meta now has the opportunity to respond in writing to the EU’s preliminary findings. The investigation, which began on March 25, is expected to conclude within 12 months, and if Meta is found to be non-compliant, it could face fines of up to 10% of its global revenue.
A spokesperson for Meta stated that the “no ads” subscription aligns with European regulations and the DMA. They expressed a desire for ongoing constructive discussions with the European Commission to resolve the investigation satisfactorily.
In addition to Meta, Apple also recently received preliminary findings from the European Commission regarding potential violations of the DMA. The commission highlighted that Apple’s App Store rules restrict app developers from directing consumers to other channels for app offers and content. Both Meta and Apple are facing scrutiny in the EU for their business practices.