In late June, the European Union made a preliminary announcement that Apple had violated the Digital Markets Act (DMA), which is the bloc’s first regulatory action since the law was put into effect in March. Now, it’s Meta’s turn to face scrutiny, as the EU declared that Facebook and Instagram’s owner has also breached the DMA. The European Commission initiated investigations into Apple, Meta, and Alphabet (Google’s parent company) shortly after the DMA came into effect.
The Commission’s initial findings regarding Meta focus on concerns related to Meta’s “consent or pay” model. Currently, Meta offers users the option to access its apps for free in exchange for consenting to data sharing, or paying to prevent data collection. The Commission’s statement argues that Meta does not provide users with the choice to opt for a service that uses less of their personal data but is otherwise similar to the personalized ads-based service. Additionally, Meta does not allow users to freely consent to the combination of their personal data.
Consistent with previous statements, the Commission has called on Meta to develop an “equivalent alternative” that does not require a payment. The EU’s regulatory body has until late March 2025 to reach a final decision, which is one year after the investigation was initiated. If Meta is found to have violated the DMA, it could face a fine amounting to ten percent of its annual global revenue.
Despite the allegations, Meta has not admitted to any wrongdoing. In a statement, Meta stated, “Subscription for no ads aligns with the highest court in Europe and complies with the DMA. We are eager to engage in further constructive discussions with the European Commission to bring this investigation to a resolution.”
It is essential for Meta to address the concerns raised by the European Commission to avoid potential fines and further legal implications. The outcome of this investigation will not only impact Meta but also set a precedent for other tech giants operating within the EU. Compliance with regulations such as the DMA is crucial for maintaining a fair and competitive digital market in the European Union. Stay tuned for updates as the investigation progresses and a final decision is reached.
