EU antitrust regulators on Monday charged Meta Platforms with breaching key technology rules for targeting the US company’s newly introduced paid or consent advertising model, which has already been the target of ire from privacy regulators and activists.
The tech giant launched an ad-free subscription service for Facebook and Instagram in Europe last November, saying users who agree to be tracked get a free service funded by advertising revenue. Or they could pay for an ad-free service.
The European Commission, which acts as the EU’s competition enforcement body, said Binary Choice violates the bloc’s Digital Markets Act (DMA) which seeks to curb the power of Big Tech, as it sent its preliminary findings to Meta.
It said the binary choice forces users to consent to the combination of their personal data and does not provide them with a less personalized but equivalent version of Meta’s social networks.
“We want to empower citizens to take control of their own data and choose a less personalized advertising experience,” EU antitrust chief Margrethe Vestager said in a statement.
Meta said that its model is in accordance with the ruling of the highest European court.
“The ad ban subscription follows the guidelines of the highest court in Europe and is in line with the DMA. We look forward to further constructive dialogue with the European Commission to bring this investigation to a conclusion,” said a spokesman for Meta.
Meta can adjust its advertising model to avoid a fine of up to 10 percent of its global annual turnover if found guilty of violating the DMA. The commission has until March next year to complete its investigation.
Privacy activists and privacy watchdogs have also taken issue with Meta’s advertising model.
Reuters first reported that the EU competition authority would charge Meta with breaching the Digital Markets Act.
The charge against Meta comes a week after the EU watchdog issued its first DMA charge against Apple for failing to comply with the new rule.
© Thomson Reuters 2024
