The European Commission has released preliminary findings indicating that Mark Zuckerberg’s “pay or consent” offer to Facebook and Instagram users in Europe violates the Digital Markets Act (DMA).
TechCrunch reports that the European Commission has announced that its investigation into Meta’s controversial “pay or consent” model has yielded preliminary results suggesting non-compliance with the Digital Markets Act (DMA). This finding could have far-reaching implications for the social media giant’s operations in Europe and potentially reshape its business model.
The investigation, which began in March, focused on Meta’s practice of offering users a binary choice: either consent to data tracking for personalized advertising or pay a monthly fee for ad-free access to Facebook and Instagram. The Commission’s preliminary view is that this approach “forces users to consent to the combination of their personal data and fails to provide them a less personalized but equivalent version of Meta’s social networks.”
This stance aligns with concerns raised by privacy advocacy and consumer protection groups, who have long argued that Meta’s approach does not comply with EU data protection or consumer protection rules. The DMA, which came into effect for designated “gatekeepers” like Meta on March 7, aims to level the playing field in digital markets by targeting advantages that dominant companies can exploit.
The potential consequences for Meta are severe. If the violation is confirmed, the company could face penalties of up to 10 percent of its global annual revenue, with the possibility of this increasing to 20 percent for repeat offences. More significantly, Meta might be compelled to abandon its long-standing business model that relies on user consent to surveillance advertising as a condition for using its platforms.
A key point of contention is the interpretation of what constitutes an “equivalent” service. The Commission emphasizes that as long as Meta’s social networking services are free, any alternative offered to users who refuse tracking must also be free. This interpretation challenges Meta’s current approach of charging nearly €13 ($13.98) per month per account for ad-free access.
The Commission suggests that Meta could provide a free alternative with non-personalized ads, such as contextual advertising, which doesn’t rely on user data for targeting. This proposal highlights a potential path forward for the company to comply with the DMA while maintaining a free service option.
Meta has defended its approach, citing a previous EU court judgment to support its subscription model. However, Commission officials counter that the judgment in question only allows for charging a fee “if necessary,” and argue that Meta has not adequately justified why a fee is required in this case.
The investigation is ongoing, and Meta will have an opportunity to respond to these preliminary findings. The Commission has set a 12-month timeline for completing the probe, indicating that a final decision should be reached by March 2025 at the latest.
This development has been welcomed by consumer advocacy groups, including BEUC (The European Consumer Organization). Agustin Reyna, BEUC’s director general, praised the Commission’s action and urged swift enforcement of the DMA against Meta’s practices
Read more at TechCrunch here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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