Meta’s ‘pay or consent’ model targeted for breaches of EU technology rules

Meta Platforms (META) was accused by European Union antitrust regulators on Monday of failing to comply with groundbreaking tech rules when they aimed to target the U.S. company’s newly introduced payment- or consent-based advertising model, which has already become a target of privacy regulators and activist anger.

The tech giant launched an ad-free subscription service for Facebook and Instagram in Europe last November, saying users who opted in to tracking would get a free service that was funded by advertising revenue. They could also pay for an ad-free service.

The European Commission, which acts as the EU’s competition enforcer, found that Binary Choice violates the Digital Markets Act (DMA), which aims to curb the power of Big Tech, after sending its initial findings to Meta.

It said binary choice 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.

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

Meta said its model complies with the ruling by Europe’s highest court.

“The ad-free subscription is in line with the guidelines of the highest court in Europe and is in line with the DMA. We look forward to continuing the constructive dialogue with the European Commission to conclude this investigation,” a Meta spokesperson said.

Meta could tweak its advertising model to avoid a fine of as much as 10% of its global annual turnover if it is found guilty of DMA breaches. The commission has until March next year to conclude its investigation.

Privacy activists and privacy watchdogs also disagree with Meta’s advertising model.

Reuters was the first to report that the EU competition enforcement authority would accuse Meta of non-compliance with the Digital Markets Act.

The charges against Meta come a week after the EU watchdog issued its first DMA charge against Apple for failing to comply with the new rule.

(Reporting by Foo Yun Chee; Editing by Susan Fenton)