Meta accused of violating antitrust rules by EU regulators over ad-supported services

Last November, Meta launched its Facebook and Instagram subscription service in Europe, offering users a choice between a free version with ads and a paid version without ads. The company said users who opted in to data tracking would get the free service funded by ad revenue, while those who opted out would be able to pay to use the ad-free service.

However, the European Commission argues that this binary choice violates the DMA, which aims to limit the dominance of Big Tech companies. The Commission’s preliminary findings show that Meta’s model forces users to consent to the combination of their personal data and does not provide users with an equivalent, less personalized alternative.

Related: Meta and OpenAI CEOs support EU AI regulations

EU antitrust chief Margrethe Vestager stressed the importance of giving citizens control over their data. “We want to empower people to take control of their own data and opt out of less personalised advertising,” Vestager said in a statement.

Meta defends its subscription model, saying it complies with a recent ruling by Europe’s highest court. “The ad-free subscription is in line with the guidelines of Europe’s highest court and is compliant with the DMA. We look forward to continued constructive dialogue with the European Commission to conclude this investigation,” a Meta spokesperson said.

If found guilty of violating the DMA, Meta could be fined up to 10% of its global annual turnover. The commission has until March next year to complete its investigation.

Activists and privacy watchdogs have also raised concerns about Meta’s advertising model. This accusation against Meta follows a similar action against Apple, which was accused of failing to comply with the DMA a week earlier.

Reuters was the first to report on the charges brought against Meta by the EU competition authority under the Digital Market Act.

Source: CNBC