In a significant development, the European Commission (EC) has released initial conclusions stating that Meta Platforms’ advertising model, where users must either pay or consent to personalized ads, violates the Digital Markets Act (DMA).
This finding forms part of an ongoing investigation into the tech giant and is expected to conclude by March 2025.
Last November, Meta’s Facebook and Instagram introduced a subscription service in Europe that offers an ad-free experience, but users must either subscribe or agree to allow their data to be tracked for personalized advertising.
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The EC’s preliminary findings indicate that this model restricts users from opting for a service that uses less of their personal data while providing similar features to the personalized ads service. The EC additionally pointed out that Meta Platforms’ advertising model fails to uphold users’ rights to freely consent to the aggregation of their personal data.
“To ensure compliance with the DMA, users who do not consent should still get access to an equivalent service which uses less of their personal data, in this case for the personalization of advertising,” the EC findings stated.
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If Meta fails to address these issues, the EC has the authority to impose a fine of up to ten percent of Meta’s total worldwide turnover. In cases of repeated violations, this fine could potentially increase to 20 percent.
Margrethe Vestager, the EVP overseeing digital policy at the EC, emphasized the importance of empowering citizens to manage their own data and opt for a less personalized advertising experience.
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