Meta Platforms was accused on Monday by European Union anticompetition regulators of failing to comply with landmark tech rules, as they took aim at the US company’s newly introduced pay or consent advertising model, which is already the target of the anger of privacy regulators and activists.
The tech giant launched a no-ads subscription service for Facebook and Instagram in Europe in November last year, saying users who consent to being tracked will get a free service funded by ad revenue. Or they can pay for an ad-free service.
The European Commission, which acts as the EU’s competition enforcer, said Binary Choice violates the bloc’s Digital Markets Act (DMA), which seeks to rein in the power of Big Tech, as it sent its preliminary finding to Meta.
It said Binary Choice forces users to consent to the combination of their personal data and fails to provide them with a less personal but equivalent version of Meta’s social network.
“We want to enable citizens to take control of their data and choose a less personalized advertising experience,” EU anticompetition chief Margrethe Vestager said in a statement.
Meta said its model complies with the ruling by Europe’s top court.
A Meta spokesperson said: “The ad-free subscription follows the directive of Europe’s highest court and complies with the DMA. We look forward to further constructive dialogue with the European Commission to conclude this investigation.”
Meta can change its advertising model to avoid fines of up to 10% of its global annual turnover if it is found guilty of DMA violations. The commission has until March next year to complete its investigation.
Privacy activists and privacy watchdogs have also questioned Meta’s advertising model.
Reuters was first to report that the EU’s competition enforcer would charge Meta with non-compliance under the Digital Markets Act.
The charge against Meta comes a week after the EU watchdog issued the first DMA charge against Apple for non-compliance with the new rule.
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