EU Finds Meta’s ‘Pay or Consent’ Model in Breach of Digital Markets Act

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The European Commission has released preliminary findings indicating that Mark Zuckerberg’s “pay or consent” offer to Facebook and Instagram users in Europe violates the Digital Markets Act .that the European Commission has announced that its investigation into Meta’s controversial “pay or consent” model has yielded preliminary results suggesting non-compliance with the Digital Markets Act .

This stance aligns with concerns raised by privacy advocacy and consumer protection groups, who have long argued that Meta’s approach does not comply with EU data protection or consumer protection rules. The DMA, which came into effect for designated “gatekeepers” like Meta on March 7, aims to level the playing field in digital markets by targeting advantages that dominant companies can exploit.

A key point of contention is the interpretation of what constitutes an “equivalent” service. The Commission emphasizes that as long as Meta’s social networking services are free, any alternative offered to users who refuse tracking must also be free. This interpretation challenges Meta’s current approach of charging nearly €13 per month per account for ad-free access.

Meta has defended its approach, citing a previous EU court judgment to support its subscription model. However, Commission officials counter that the judgment in question only allows for charging a fee “if necessary,” and argue that Meta has not adequately justified why a fee is required in this case.

 

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E.U. says Meta’s ‘pay or consent’ ads violate competition lawRegulators say the tech giant breached the Digital Markets Act in requiring Instagram and Facebook users to pay if they don’t want personal data used to generate targeted ads.
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