Meta is facing charges from EU antitrust regulators for allegedly not adhering to the Union’s tech regulations, specifically related to its pay-or-consent advertising model across EU countries. This model has garnered criticism from privacy regulators and activists alike.
In November, Meta introduced a subscription service in Europe for Facebook and Instagram that offers an ad-free experience for users who consent to being tracked. Users can choose between a free service supported by advertising revenue or a paid ad-free option.
The European Commission, acting as the EU’s competition enforcer, claims that this binary choice violates the Digital Markets Act (DMA), which aims to curb the dominance of major tech companies. The Commission argues that forcing users to consent to their personal data being combined is not in line with the regulations.
EU antitrust chief Margrethe Vestager emphasized the importance of empowering citizens to control their data and opt for a less personalized ads experience. In response, Meta defended its model by stating that it aligns with a ruling from Europe’s highest court and complies with the DMA.
If found guilty of breaching the DMA, Meta could face fines up to 10% of its global annual turnover. The investigation is expected to conclude by March next year. This charge against Meta comes shortly after a similar action taken against Apple by the EU watchdog, highlighting significant regulatory developments in the telecommunications sector.
Last month, Apple decided not to include its new Apple Intelligence AI technologies in iPhones sold in the EU due to concerns about potential privacy regulation violations under the DMA. European Commissioner for Competition Margrethe Vestager criticized Apple’s decision, suggesting it may be an attempt to evade competition obligations outlined in the DMA.
These recent actions underscore the growing importance of compliance with EU tech regulations for major companies like Meta and Apple operating in European markets. It will be interesting to see how these cases unfold and how they may impact future advertising and data privacy practices within the telecommunications industry.
