E.U. says Meta's 'pay or consent' ads violate competition law
What are the consequences for Meta if found non-compliant?
If found non-compliant with the EU's Digital Markets Act, Meta could face fines of up to 10% of its annual global revenue. The preliminary findings indicate that Meta's requirement for users to pay if they don't want personalized ads does not allow them the right to freely consent to the use of their personal data.
What law did Meta allegedly violate in the EU?
Meta allegedly violated the European Union's Digital Markets Act (DMA) by requiring Instagram and Facebook users to pay if they don't want their personal data used for targeted ads. The EU claims this does not allow users the right to freely consent to data use and that Meta failed to offer an equivalent service with less data usage.
How does Meta's ad model conflict with the DMA?
Meta's ad model conflicts with the DMA as it forces users to either pay for an ad-free version or consent to personalized ads, combining their personal data across Meta's platforms3. The DMA requires offering a free, less personalized ad alternative, which Meta's model does not provide, thus potentially violating users' right to freely consent to data combination.