European Union regulators accused social media company Meta Platforms on Monday of breaching the bloc’s new digital competition rulebook by forcing Facebook and Instagram users to choose between seeing ads or paying to avoid them
European Union regulators have accused tech giant Meta of breaching the bloc’s new digital competition rulebook by forcing Facebook and Instagram users to choose between seeing ads or paying to avoid them.
Last November, Meta introduced a paid option for an ad-free experience on Facebook and Instagram to align with Europe’s stringent data privacy regulations. For a monthly fee starting at 10 euros ($10.75), users can avoid ads that are tailored using their personal information.
The US tech giant rolled out the option after the European Union’s top court ruled Meta must first get consent before showing ads to users, in a decision that threatened its business model of tailoring ads based on individual users’ online interests and digital activity. The European Commission, the EU’s governing body, has voiced concerns that Meta’s “pay or consent” ad scheme may contravene the Digital Markets Act of the 27-member bloc.
According to the commission’s initial investigation, Meta’s approach hinders users’ ability to “freely consent” to the amalgamation of their data across its various digital offerings including Facebook, Instagram, Marketplace, WhatsApp, and Messenger for targeted advertising. Furthermore, the commission criticized Meta for not offering a less intrusive, yet still comparable alternative to its social networking platforms.
“Subscription for no ads follows the direction of the highest court in Europe and complies with the DMA,” Meta declared. “We look forward to further constructive dialogue with the European Commission to bring this investigation to a close.” The commission launched its probe just after the Digital Markets Act (DMA) came into force in March, introducing broad regulations to stop tech giants from monopolising digital markets, with the threat of hefty fines.
The DMA aims to curb the dominance of big tech by limiting their ability to exploit user data, which gives them an unfair advantage over competitors in online advertising and social media. The commission wants Meta to offer alternatives that don’t hinge on exploiting comprehensive personal data for ad targeting.
“The DMA is there to give back to the users the power to decide how their data is used and ensure innovative companies can compete on equal footing with tech giants on data access,” said European Commissioner Thierry Breton, in charge of the EU’s digital policy.
Meta has the opportunity to respond to the commission’s concerns before the investigation concludes by March 2025. Failure to comply could result in fines amounting to 10% of its annual global turnover, potentially reaching billions of euros. Under the new Digital Markets Act, Meta has been identified as one of seven key online gatekeepers, with Facebook, Instagram, WhatsApp, Messenger, and its online advertising business listed among twenty-four “core platform services” that require the most stringent level of scrutiny.
The decision on Monday is part of a recent surge in regulatory actions by Brussels aimed at reining in big tech firms. Just last week, the EU issued its inaugural charges under the DMA, accusing Apple of blocking app developers from directing users to more affordable options outside of its App Store.
Additionally, Microsoft was recently charged by the EU for allegedly breaching antitrust laws by integrating its Teams messaging and videoconferencing app with the widely used Office suite.
