Meta Is Now Being Charged With Violating EU’s Competition Law
Apple was also recently found in breach of the Digital Markets Act.
After Apple was accused of violating the Digital Markets Act with its payment steering practices, the European Commission is now saying that Meta has also broken the law.
Following an investigation, the Commission has shared preliminary findings that accuse Meta of failing to comply with the DMA. More specifically, the organization says that Meta’s “pay or consent” advertising model forces users to provide personal data for advertising purposes.
Under Meta’s advertising model, users of the free-of-charge versions of Instagram and Facebook must agree to terms of service that include offering their data for personalized advertising. For those who don’t comply, the only other option is to subscribe to the paid, ad-free versions of the apps.
The DMA, meanwhile, requires apps to allow users to freely consent to giving or withholding their personal data, which means that there must be an alternative version of the app offered that uses “less” personal data.
The Commission has officially informed Meta of its breach. While the company can submit a defense of its actions, it now risks a fine of 10% of its global yearly revenue.
