European regulators have accused Meta of violating the Digital Markets Act with its subscription option that allows users to pay for an ad-free experience on Instagram and Facebook. The regulators argue that this “pay or consent” scheme forces users to choose between paying for privacy or giving Meta more personal data for targeted advertising. The subscription service, priced up to 12.99 euros a month, was introduced by Meta last year as a way to address regulatory scrutiny of its advertising-based business model. However, regulators say that the system does not offer users a fair choice and violates the new law aimed at curbing the power of big tech companies.
In response, Meta defends its subscription service, stating that it complies with the Digital Markets Act and is working with European regulators to resolve the investigation. The company claims that Europe’s regulatory complexity and patchwork of laws across member states hinder innovation and product rollout in the region. Meta is now facing potential fines of up to 10 percent of its global revenue if found guilty of breaching the law.
The European Commission has until March to complete its investigation into Meta’s practices. If found guilty, Meta could face significant financial penalties. This case is part of a broader effort by European regulators to hold tech giants accountable and empower users to control their personal data. Apple is another company that has recently been charged under the Digital Markets Act for unfair business practices related to the App Store.
Source
Photo credit www.nytimes.com