Meta could get slapped with a massive fine for violating the EU’s Digital Markets Act

At the end of June, the European Union shared its preliminary results Apple violated the Digital Markets Act (DMA) — the bloc’s first regulatory measure since the law took effect in March. Now it’s Meta’s turn, the EU announced Facebook and the owner of Instagram also violated the DMA. The The European Commission first started investigations Shortly after the DMA law went into effect, Apple, Meta, and Google’s parent company Alphabet became.

The Commission’s preliminary findings on Meta focus on concerns about Meta’s “consent or pay” model. Meta currently gives users the option to access their app for free and pay to consent to data sharing or opt out of its collection. According to the Commission’s statement, Meta “does not allow users to choose a service that uses less of their personal data but is otherwise equivalent to a service based on ‘personalized ads’.” Furthermore, Meta “does not allow users to exercise their rights.” to freely consent to the combination of their personal data.”

Reflects past statements, the Commission called on Meta to create an “equivalent alternative” that would not require any fees. The EU regulator has until the end of March 2025 – a year after opening the investigation – to make a final decision. If Meta is found guilty of violating the DMA, it could pay a fine equal to ten percent of its annual global revenue.

Meta has yet to admit any wrongdoing. “The ad-free subscription is in line with the directive of Europe’s highest court and complies with the DMA. We look forward to further constructive dialogue with the European Commission to bring this investigation to a close,” Meta said in a statement.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *