The EU is about to accuse Meta of "pay or consent" model
The European Union is set to charge Facebook's parent company Meta Platforms, accusing it of violating EU digital regulations. The latest investigation is related to Meta's "pay or consent" model. EU regulators are concerned that the choices provided by Meta's model may mislead consumers, as financial constraints may force them to consent to the use of personal data for advertising purposes. If Meta is found to have violated the law, it could face hefty fines. In addition, EU antitrust regulators have also filed similar lawsuits against Apple
According to the Zhītōng Finance and Economics APP, as reported by local British media on Monday local time, the European Union is set to accuse Facebook's parent company Meta Platforms (META.US) of violating the EU's landmark digital regulatory rules. In March this year, the European Commission launched an investigation into Apple (AAPL.US), Google under Alphabet (GOOGL.US), and Facebook's parent company Meta Platforms (META.US) for possible violations of the Digital Markets Act (DMA).
In the case of Meta, the latest investigation is related to the social network company's "pay or agree" model. British media cited three sources familiar with the matter who revealed that in the preliminary investigation results to be released this week, regulators will express concerns about Meta's "pay or agree" model.
At the end of last year, Meta launched an ad-free subscription service for its social media platforms Facebook and Instagram in Europe to comply with evolving European regulatory laws, allowing users to opt out of the company's data tracking technology for advertising purposes. Meanwhile, users who agree to be tracked will receive a free service.
It is expected that the EU regulatory authorities will indicate that the choices provided by Meta's model may give consumers a false and misleading choice, as financial barriers may force them to agree to have their personal data used for advertising purposes.
The sources cited by the media summarized that if found to be in violation of the law, Meta could face fines of up to 10% of its global turnover, and if repeated, fines of up to 20%.
Last week, the EU antitrust regulator filed a similar lawsuit against Apple (AAPL.US). The European Commission stated that the rules of the Apple App Store violate the EU's Digital Markets Act (DMA) because these rules prevent app developers from directing consumers to other alternative channels to obtain products and related content