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The European Commission continues investigating whether Meta’s “pay or consent” advertising model breaches the Digital Markets Act.
On July 1, the EU Commission published preliminary findings concluding that Meta’s “pay or consent” model does not comply with the DMA.?
What Is Pay or Consent?
Meta users in the EU must either consent to receive personalized adverts or pay 13 Euros (~$14) to remove them. The DMA states that users who don’t consent to personalized ads should still be able to access “an equivalent service” using less of their personal data.
The tech giant’s “pay or consent” model was introduced in 2023 and raised concerns even at launch. Following concerns, it offered to reduce its base subscription fee from 10 Euros (~$11) to 6 Euros (~$6). Still, the Commission stated that this doesn’t give users any real choice.
The European Commission wants Meta to create a fee-free equivalent alternative to its current subscription model. It will aim to conclude its investigation, which commenced at the end of March, within 12 months.?
Meta Faces a Huge Fine
If the Commission rules Meta has breached regulations, the company could face a huge fine of up to 10% of its global revenue.?
It’s not the only tech giant under investigation. The European Commission is also looking into Google’s Play Store policies and has alleged that Apple is breaching the same rules over its App Store policies, preventing companies from steering users elsewhere. If found guilty, Apple could face the same fine as Meta.
Meta contends the decision and claims it is fully compliant with the DMA.
