European Union regulators have accused Meta of violating the bloc’s new competition law by requiring users of Instagram and Facebook to pay if they do not want their personal data to be used for targeted ads. This move goes against the goal of giving citizens control over their own data, as stated by Margrethe Vestager, the European Commission’s executive vice president for competition policy.
The ongoing investigation into Meta’s compliance with the E.U.’s Digital Markets Act (DMA) is focusing on whether the social media company is following the rules set out for Big Tech companies. If the commission’s preliminary findings are upheld, Meta could face fines of up to 10 percent of its annual global revenue.
The E.U. claims that Meta’s pay-for-privacy option for users does not give them the ability to freely consent to the use of their personal data, as required under the DMA. The company has also been accused of not providing an equivalent service that uses less personal data as an alternative for those who choose not to pay for privacy.
Meta has denied the allegations and stated that its “subscription for no ads” model is in compliance with the DMA. The company looks forward to engaging in further discussions with the European Commission to resolve the investigation.
The DMA came into full effect in March and aims to prevent big internet companies from abusing their market power. Critics of the law warn that excessive regulation could stifle innovation in the internet sector. Since the law took effect, E.U. regulators have been actively investigating companies like Apple, Meta, and Alphabet for potential antitrust violations.
Meta had introduced the pay-or-consent option for ads in the E.U. market last November to show regulators its compliance with the DMA. However, regulators appear to be unconvinced by Meta’s efforts. In addition to Meta, Apple and Microsoft have also been warned in recent days by the E.U. for violating antitrust rules.