Meta finds itself at the centre of a European antitrust dispute, joining Apple and Microsoft

Image for an article titled First Apple and Microsoft. Now Meta is in the antitrust hot seat in Europe — Photo: : Alex Wong (Getty photos)

The European Union said on Monday that Meta’s “pay or agree” advertising model violates a new digital competition law that both Apple AND Microsoft were also nailed for that.

This year, Apple has patched many security holes in its devices.

European Union he said Meta’s policy “forces users to consent to the combination of their personal data and does not provide them with a less personalized but equivalent version of Meta’s social networks,” which is inconsistent with the Digital Markets Act.

Meta created the “pay or agree” model in response to EU regulatory changes, forcing Facebook and Instagram users in Europe to choose between a paid ad-free version of the service and a free version with personalized ads. However, the EU found that this was not enough because it “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.’”

If the Commission ultimately finds that Meta has breached DMA rules, the company could be fined 10% of global revenues. Repeated violations of the law can increase fines by up to 20%.

The final decision must be made by 25 March 2025 or 12 months after Regulators have launched an investigation into a number of technology companies’ compliance with the DMA.

“Our investigation aims to ensure competitiveness in markets where gatekeepers like Meta have been collecting the personal data of millions of EU citizens for many years,” Margrethe Vestager, executive vice president for competition policy, said in a statement. “Our initial view is that Meta’s advertising model is not compliant with the Digital Markets Act. We want to empower citizens to take control of their own data and choose less personalized advertising.”

Last month, the EU accused Apple of failing to comply with the law by preventing app developers from freely directing consumers to alternative ways of making purchases.

In June, the company also said Microsoft violated the law by including Teams in Microsoft 365 — even though consumers you don’t have a service plan — or by providing a free one-year trial of Office 365, Microsoft is harming competition.