Meta is accused of violating European law with its compensation or consent model

CNN, London —

Facebook's parent company, Meta, is accused of violating Europe's new digital competition rules regarding paid or consent-based advertising models.

Late last year, Meta launched an ad-free subscription service, allowing European users of Facebook and Instagram to get ad-free versions for up to US$12.99 ($14) per month. The alternative is to accept a personalized, ad-supported version.

In a statement on Monday, the European Commission said in its preliminary view that the choice forces users to consent to the use of their personal data and fails to offer a comparable but less personalized version of the Metas social network.

If the Commission's provisional findings are upheld, the EU could impose fines on Meta under its landmark Digital Markets Law equal to 10% of its annual global turnover — $13.5 billion based on the company's 2023 financial results.

Mehta said he did not accept the committee's findings.

A spokesperson told CNN that the ad-free subscriptions comply with the DMA as instructed by the European Court of Justice, and that the company looks forward to further constructive dialogue with the European Commission to bring this investigation to an end.

The EU announcement comes a week after the European Commission accused Apple (AAPL) of violating the DMA by preventing app developers from freely steering consumers to cheaper services. Regulators are also investigating Google parent Alphabet (GOOGL) under the new law.

The DMA, which came into force in March, requires dominant online platforms – so-called gatekeepers – to give users more choice and increase competition for rivals. Online platforms often collect personal data through their own and third-party services and use it to serve digital ads.

Margrethe Vestager, the European Commissioner for Competition, said in a statement on Monday that Meta had accumulated personal data of millions of EU citizens over the years.

“We want to empower citizens to control their data and choose a less personalized advertising experience,” she said.

Michael Koenig, a senior member of the committee, said Meta needs to offer users a full ad personalization alternative that doesn't rely on such personal data and that is automatically less personalized but still available to users.

Meta will then be free to choose a third option, a subscription with no ads at all, or a fourth option with premium features, he told reporters.

The European Commission is expected to finish its investigation into meth by late March next year.

This article has been updated with additional information.

Sources 1/ https://Google.com/ 2/ https://www.cnn.com/2024/07/01/tech/meta-eu-competition-rules/index.html The mention sources can contact us to remove/changing this article

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