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Meta’s Pay or Consent Model Found in Breach of EU’s Market Rules
“We want to empower citizens to be able to take control over their own data and choose a less personalised ads experience,” EU antitrust chief Margrethe Vestager said in a statement.
Meta has been found by the EU Commission to be in breach of their Digital Markets Act (DMA) in the company’s new pay or consent model for data collection.
The tech giant invoked the new subscription for an no-ad, and consequently, a lesser data-tracking, experience, after the EU had ruled that social media sites required formal consent to track user data for advertisers.
The EU’s anti-trust regulator said that the pay or consent choice did not offer a fair choice to users, who would have to pay to not get their data tracked and sold to third-party advertisers.
While Meta would have the right to introduce a subscription fee for a no-ad service, the fact that non-paying users have no way to restrict the use of their personal data for personalised advertisements goes against the EU’s regulations under GDPR and the DMA.
“We want to empower citizens to be able to take control over their own data and choose a less personalised ads experience,” EU antitrust chief Margrethe Vestager said in a statement.
While Meta claims it is not in breach of any EU laws, it will now have until March of next year to change its practices and avoid a fine worth up to 10% of its global annual revenue before the Commission concludes its investigation.
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The ruling presents a case where the remits of the DMA and the GDPR collide – the EU has already found that Meta’s pay or consent model goes against their data protection law. The DMA regulates the digital market and has specific stipulations for larger tech conglomerates, holding them to a higher standard for fair market practices to ensure competition.
“Subscription for no ads follows the direction of the highest court in Europe and complies with the DMA. We look forward to further constructive dialogue with the European Commission to bring this investigation to a close,” a Meta spokesperson said, as reported by Reuters.
