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European Union regulators accused social media company Meta Platforms<\/a> on Monday of breaching the bloc\u2019s new\u00a0digital competition rulebook<\/a>\u00a0by forcing Facebook and Instagram users to choose between seeing ads or paying to avoid them.<\/p>\n Meta began giving European users the option in November of paying for ad-free versions of Facebook and Instagram as a way to comply with the continent\u2019s\u00a0strict data privacy rules<\/a>.<\/p>\n Users can pay at least 10 euros ($10.75) a month to avoid being targeted by ads based on their personal data. The U.S. tech giant rolled out the option after the European Union\u2019s top court ruled\u00a0Meta must first get consent<\/a>\u00a0before showing ads to users, in a decision that threatened its business model of tailoring ads based on individual users\u2019 online interests and digital activity.<\/p>\n The European Commission, the EU\u2019s executive arm, said preliminary findings of its investigation show that Meta\u2019s \u201cpay or consent\u201d advertising model was in breach of the 27-nation bloc\u2019s Digital Markets Act.<\/p>\n Meta\u2019s model doesn\u2019t allow users to exercise their right to \u201cfreely consent\u201d to allowing their personal data from its various services, including Facebook, Instagram, Marketplace, WhatsApp, and Messenger, to be combined to target them with personalized online ads, the commission said.<\/p>\n Meta\u2019s model also doesn\u2019t give users the option of a service that\u2019s less personalized but still equivalent to its social networks, it said.<\/p>\n \u201cSubscription for no ads follows the direction of the highest court in Europe and complies with the DMA,\u201d Meta said in a statement. \u201cWe look forward to further constructive dialogue with the European Commission to bring this investigation to a close.\u201d<\/p>\n The commission had opened its investigation shortly after the rulebook, also known as the DMA, took effect in March. It\u2019s a\u00a0sweeping set of regulations<\/a>\u00a0aimed at preventing tech \u201cgatekeepers\u201d from cornering digital markets under threat of heavy financial penalties.<\/p>\n One of the DMA\u2019s goals is to rein in the power of Big Tech companies that have collected vast amounts of personal data on their users, giving them an edge on rivals competing in online ad or social media services. The commission indicated that in order for Meta to comply, it would like to see an option that doesn\u2019t rely on a user\u2019s full personal information being shared for advertising.<\/p>\n \u201cThe DMA is there to give back to the users the power to decide how their data is used and ensure innovative companies can compete on equal footing with tech giants on data access,\u201d European Commissioner Thierry Breton, who oversees the bloc\u2019s digital policy, said in a statement.<\/p>\n Meta now has a chance to respond to the commission, which must wrap up its investigation by March 2025. The company could face fines worth 10% of its annual global revenues, which could run into the billions of euros.<\/p>\n Under the Digital Markets Act, Meta is classed as one of seven online gatekeepers while Facebook, Instagram, WhatsApp, Messenger and its online ad business are among two dozen \u201ccore platform services\u201d that need the highest level of scrutiny.<\/p>\n Monday\u2019s decision is the latest in flurry of regulatory activity by Brussels targeting Big Tech companies. The EU leveled its first charges under the DMA a week ago,\u00a0accusing Apple<\/a>\u00a0of of preventing app makers from pointing users to cheaper options outside its App Store. It also recently\u00a0charged Microsoft<\/a>\u00a0with violating the bloc\u2019s antitrust laws by by bundling its Teams messaging and videoconferencing app with its widely used Office business software.<\/p>\n<\/div>\n\n\u2018The power to decide\u2019<\/h2>\n
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