“Facebook parent Meta has been accused of breaking Europe’s new digital competition rules over its “pay or consent” advertising model.
Late last year, Meta (META) launched a service called “Subscription for no ads,” allowing European users of Facebook and Instagram to pay up to €12.99 ($14) a month for ad-free versions. The alternative is to accept versions with personalized ads.
If the provisional findings of the Commission’s investigation are confirmed, the EU could hit
Meta with a fine equivalent to 10% of its global annual revenue under its landmark Digital Markets Act. Based on the company’s 2023 results, that would amount to $13.5 billion.
The EU announcement comes a week after the Commission accused Apple (AAPL) of breaching the DMA by preventing app developers from freely directing consumers to cheaper services. The regulators are also investigating Google parent Alphabet (GOOGL) under the new law.
Michael Koenig, a senior official at the Commission, said Meta must offer users an alternative to “full” ad personalization that “does not rely on this personal data and which is then automatically less personalized and still available to them.”
“Then Meta is free to keep a third option, which is a subscription not to see ads at all, or a fourth option which may have some premium features,” he told journalists.”
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“Facebook parent Meta has been accused of breaking Europe’s new digital competition rules over its “pay or consent” advertising model.
Late last year, Meta (META) launched a service called “Subscription for no ads,” allowing European users of Facebook and Instagram to pay up to €12.99 ($14) a month for ad-free versions. The alternative is to accept versions with personalized ads.
If the provisional findings of the Commission’s investigation are confirmed, the EU could hit
Meta with a fine equivalent to 10% of its global annual revenue under its landmark Digital Markets Act.
Based on the company’s 2023 results, that would amount to $13.5 billion.
The EU announcement comes a week after the Commission accused Apple (AAPL) of breaching the DMA by preventing app developers from freely directing consumers to cheaper services. The regulators are also investigating Google parent Alphabet (GOOGL) under the new law.
Michael Koenig, a senior official at the Commission, said Meta must offer users an alternative to “full” ad personalization that “does not rely on this personal data and which is then automatically less personalized and still available to them.”
“Then Meta is free to keep a third option, which is a subscription not to see ads at all, or a fourth option which may have some premium features,” he told journalists.”