The European Union is preparing to take action against Meta, the parent company of Facebook, under its stringent digital regulations. According to sources familiar with the matter cited by the Financial Times, EU regulators are expected to announce initial findings this week related to Meta’s controversial “pay or consent” model.
Last November, Meta launched a subscription service in Europe that allows users to opt out of targeted advertising by paying for an ad-free experience on Facebook and Instagram. Users who decline to pay are served ads, but must consent to their personal data being tracked for advertising purposes.
The impending charge from EU regulators centers on concerns that Meta’s approach may present a deceptive choice to users. Critics argue that by imposing a financial barrier on users who prioritize privacy, Meta may effectively coerce them into consenting to data tracking involuntarily. This issue aligns with the EU’s broader efforts to uphold consumer rights and ensure transparency in the operations of digital platforms.
Meta and the European Commission have not yet responded to requests for comment on the reported findings.
This development follows recent actions by EU antitrust regulators against Apple for breaching the bloc’s tech rules under the Digital Markets Act (DMA). The DMA aims to mitigate the dominance of major tech companies like Apple and Meta, promoting fair competition and safeguarding consumer interests in the digital marketplace. Violations under the DMA could result in fines of up to 10% of a company’s global annual turnover.
The EU’s scrutiny of Meta underscores its proactive approach to regulating digital platforms, aiming to strike a balance between innovation and consumer protection in the rapidly evolving digital economy.
