EU Authorities Investigate Meta for Alleged Violations of Digital Law by Charging for Ad-Free Social Networks
Money | July 1, 2024, 9:04 a.m.
The European Commission has accused Meta, the company owned by Mark Zuckerberg, of violating the EU's new digital laws with an advertising model that offers users the choice to pay for ad-free versions of Facebook and Instagram. This "pay or consent" model requires users to either pay a monthly fee for an ad-free experience or allow their personal data to be used for targeted advertising. The European Commission found that this model does not comply with the Digital Markets Act (DMA) and forces users to consent to data collection if they do not want to pay. Meta must now create equivalent versions of Facebook and Instagram that use less personal data to meet DMA requirements. Meta defends its model, stating it is designed to comply with regulatory demands. The commission must conclude its investigation by March, with Meta facing a potential fine of up to $13.5 billion for breaching the act.