Meta is under scrutiny by the European Union for violating the Digital Markets Act (DMA), following a recent investigation. This investigation, which also includes Apple and Google’s parent company Alphabet, focuses on Meta’s “pay or consent” model.
Meta offers users two choices:
- Access its apps for free while consenting to data sharing, or
- Pay a fee to avoid data collection.
The European Commission’s preliminary findings criticize Meta for not providing an option that uses less personal data without compromising service quality. Additionally, Meta does not allow users to freely consent to the combination of their personal data.
What Are the EU’s Demands for Meta?
The Commission demands that Meta offer a free alternative that requires no fee and uses less personal data. The EU has until March 2025 to make a final decision. If found guilty, Meta could face a fine of up to 10% of its annual global revenue, and 20% for repeat offenses.
Meta has denied any wrongdoing, stating, “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.”
The Commission emphasized that Meta’s current approach forces users to either consent to data sharing or pay a fee, without providing a less personalized but equivalent service. The goal of the DMA is to level the playing field by addressing the advantages that gatekeepers like Meta exploit due to their dominance.
Privacy Groups Challenge Meta’s Practices
Privacy and consumer protection groups have also argued that Meta’s subscription model does not comply with the bloc’s data protection and consumer protection rules. Users currently pay around €13 per month to access ad-free versions of Meta’s services. However, the Commission insists that Meta should provide a free, less personalized alternative.
The relevant article in the DMA, Article 5(2), mandates that gatekeepers must obtain users’ consent before combining personal data from core platform services with other services. Meta’s current model does not meet these requirements, as a paid subscription is not seen as a valid equivalent to free access.
The Commission suggests that Meta could offer a free, contextual advertising option that does not rely on personal data. Senior Commission officials have reiterated that if Meta’s social networking services remain free, the equivalent versions for users who do not consent to tracking must also be free.
BEUC, the European consumer organization, welcomed the preliminary findings and urged swift enforcement to protect consumers.
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