The European Commission has accused Meta, the parent company of Facebook and Instagram, of violating the region’s new digital competition rules with its “pay or consent” advertising model.
According to the Commission, Meta’s “Subscription for no ads” service, which allows users to pay up to €12.99 monthly for ad-free versions of Facebook and Instagram, fails to provide a less personalized but equivalent version of the social networks.
The Commission’s preliminary findings suggest that Meta’s binary choice forces users to consent to the use of their personal data, which may result in a fine equivalent to 10% of Meta’s global annual revenue, approximately $13.5 billion.
Meta disputes the findings, stating that its service complies with the Digital Markets Act (DMA) and follows the direction of the highest court in Europe.
The DMA, which came into force in March, aims to promote user choice and rival competition by requiring dominant online platforms to provide alternative options for users and developers.
The Commission is investigating Meta, Apple, and Google parent Alphabet under the new law, with the Meta probe expected to conclude by late March next year.
