Meta Charged by EU for Breaching Tech Rules With Its Pay or Consent Advertising Model

The European Commission, which acts as the EU competition enforcer, said the binary choice breaches the bloc's Digital Markets Act (DMA).

Advertisement
By Reuters | Updated: 1 July 2024 18:57 IST
Highlights
  • Meta launched the no-ads subscription service in November 2023
  • The firm said its model complied with a ruling from Europe's top court
  • The no-ads subscription service is available on Facebook and Instagram

Meta will be fined of as much as 10 percent of its global annual turnover if found guilty of DMA breaches

Photo Credit: Reuters

Meta Platforms was charged by EU antitrust regulators on Monday for failing to comply with landmark tech rules as they took aim at the US company's newly introduced pay or consent advertising model, already the target of privacy regulators and activists' ire.

The tech giant launched the no-ads subscription service for Facebook and Instagram in Europe last November, saying users who consent to be tracked get a free service which is funded by advertising revenues. Or they could pay for an ad-free service.

Advertisement

The European Commission, which acts as the EU competition enforcer, said the binary choice breaches the bloc's Digital Markets Act (DMA) which seeks to rein in the power of Big Tech, as it sent its preliminary finding to Meta.

It said the binary choice forces users to consent to the combination of their personal data and fails to provide them a less personalised but equivalent version of Meta's social networks.

Advertisement

"We want to empower citizens to be able to take control over their own data and choose a less personalised ads experience," EU antitrust chief Margrethe Vestager said in a statement.

Meta said its model complied with a ruling from Europe's top court.

Advertisement

"Subscription for no ads follows the direction of the highest court in Europe and complies with the DMA. We look forward to further constructive dialogue with the European Commission to bring this investigation to a close," a Meta spokesperson said.

Meta can tweak its advertising model to stave off a fine of as much as 10 percent of its global annual turnover if found guilty of DMA breaches. The Commission has until March next year to wrap up its investigation.

Advertisement

Privacy activists and privacy watchdogs have also taken issue with Meta's advertising model.

Reuters was the first to report that the EU competition enforcer would charge Meta with non-compliance under the Digital Markets Act.

The charge against Meta came a week after the EU watchdog issued its first DMA charge against Apple for not complying with the new rule.

© Thomson Reuters 2024


Is the Samsung Galaxy Z Flip 5 the best foldable phone you can buy in India right now? We discuss the company's new clamshell-style foldable handset on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Meta, EU, Digital Markets Act
Advertisement

Related Stories

Popular Mobile Brands
  1. OnePlus Phones Will Soon Run on ColorOS 17 Instead of OxygenOS
  2. Nubia NaviX Ultra Design, Colourways Unveiled Ahead of July 17 Launch
  3. Oppo, OnePlus Could Equip New Phones With a 10,000mAh Battery
  4. Vivo T5 Lite 5G With a 6,500mAh Battery Debuts in India at This Price
  5. Former Rockstar Games Producer Explains Why GTA 6 Is Not Launching on PC
  1. Google Rebrands NotebookLM as Gemini Notebook; Brings Cloud Computing and Search Integration
  2. Samsung Music Studio 5, Music Studio 7 Wi-Fi Speakers Launched in India
  3. Ostium Suspends Trading Following Oracle Security Incident Drains Millions
  4. Oppo’s New A Series, Upcoming OnePlus Mid-Range Smartphones Tipped to Launch With 10,000mAh Batteries
  5. WhatsApp Reportedly Rolls Out Mic Mode Controls for iPhone Calls
  6. Former Rockstar Games Developer Explains Why GTA 6 Maker Launches Games on PC After Consoles
  7. Samsung Galaxy Tab S12 Ultra CAD Renders Leaked Online; Reveals Familiar Look
  8. Apple Back to School Sale Now Live in India, Bringing Offers on MacBook Air, iPad Pro and More
  9. Realme Could Replace Realme UI With ColorOS 17 in India: Report
  10. Nubia NaviX Ultra Design, Colour Options Unveiled Ahead of July 17 Launch
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.