The European Union has accused Meta, the parent company of Facebook, of violating the bloc’s stringent digital regulations, specifically the Digital Markets Act (DMA). This move could potentially result in fines amounting to billions of euros for the US-based tech giant.**
The European Commission announced on Monday its preliminary findings that Meta’s recent ad-free subscription model for Facebook and Instagram fails to comply with the DMA. This model, which requires users either to pay a subscription fee to avoid data collection or to consent to data sharing in order to use the platforms for free, has sparked significant privacy concerns and numerous complaints.
“This binary choice forces users to consent to the combination of their personal data and fails to provide them a less personalized but equivalent version of Meta’s social networks,” stated the European Commission in a pointed press release. The commission’s initial investigation, launched in March, aims to enforce the DMA’s mandate for increased user choice and data protection.
Meta has staunchly defended its model, asserting compliance with the DMA. A company spokesperson expressed hope for a “constructive dialogue” with the Commission to resolve the issue. Despite this, if the Commission confirms its current view, Meta could face fines up to 10 percent of its global turnover, which stood at $135 billion (125 billion euros) last year. For repeat offenders, fines could soar to 20 percent.
The DMA designates Meta and other tech giants, including Apple and Google, as “gatekeepers,” preventing them from imposing restrictive data consent conditions on users. The Commission argues that Meta’s model does not allow users to “freely consent” to their data being shared across Facebook and Instagram, thus violating the DMA’s core principles.
Thierry Breton, the EU’s top tech enforcer, emphasized the DMA’s role in empowering users and fostering fair competition. “The 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,” Breton stated.
Meta now has the opportunity to respond to the Commission’s findings and possibly avoid fines by modifying its business practices to address the EU’s concerns. A final decision on Meta’s compliance with the DMA is expected by March 2025.
