By C. Perera, JadeTimes News
The European Commission has accused Meta of violating the EU’s Digital Markets Act with its new “pay or consent” advertising model. This charge, announced on Monday, comes in response to Meta's introduction of a no ads subscription service for Facebook and Instagram in Europe last November. This action is part of the EU’s ongoing scrutiny of Big Tech since the DMA was enacted earlier this year.
Meta's model offers users a choice between accepting targeted ads based on their personal data or paying to avoid them. This system was implemented following an EU ruling that required Meta to obtain user consent before displaying ads, posing a threat to Meta's business model that relies on personalized advertising.
However, the EC argues that this binary option does not allow users to "freely consent" to the use of their personal data from various Meta operated sites. Additionally, a preliminary investigation revealed that Meta does not provide a less personalized but equivalent version of its social networks.
EU antitrust chief Margrethe Vestager stated, “We want to empower citizens to be able to take control over their own data and choose a less personalised ads experience.” Violations of the DMA could lead to fines of up to 10 percent of a company’s global annual revenue.
