Meta Could Face Massive Fines for Violating This Policy
By Movieguide® Contributor
Social media giant Meta is facing backlash from the European Commission over its “pay or consent” policies.
In November, the platform introduced European users the option to pay a fee for an ad-free experience or use the apps for free with personalized ads. These options violate the Digital Markets Act requirements, which require apps to “provide users with a less personalized but equivalent alternative.”
AP News explained the current system:
Users can pay at least 10 euros ($10.75) a month to avoid being targeted by ads based on their personal data. The U.S. tech giant rolled out the option after the European Union’s top court ruled Meta must first get consent before showing ads to users, in a decision that threatened its business model of tailoring ads based on individual users’ online interests and digital activity.
In a statement, Meta denied any noncompliance and believes that its current rules follow the EU standards.
“Subscription for no ads follows the direction of the highest court in Europe and complies with the DMA,” Meta said. “We look forward to further constructive dialogue with the European Commission to bring this investigation to a close.”
However, European Commission executive VP, Margrethe Vestager, believes otherwise.
“Our investigation aims to ensure contestability in markets where gatekeepers like Meta have been accumulating personal data of millions of EU citizens over many years,” she said. “Our preliminary view is that Meta’s advertising model fails to comply with the Digital Markets Act. And we want to empower citizens to be able to take control over their own data and choose a less personalized ads experience.”
Commissioner for Internal Market Thierry Breton said of the situation, “Today we make another important step to ensure full compliance with the DMA by Meta. Our preliminary view is that Meta’s ‘Pay or Consent’ business model is in breach of the DMA. 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.”
Meta has until March 2025 to conclude an investigation that proves itself in compliance. If proven otherwise, the company will have to pay fines up to 10% of its annual global earnings.
Movieguide® previously reported on Meta:
Millions of Instagram and Threads users have stopped seeing political content on their feeds as problems with a new setting have limited the reach of that content, even among those who want to see it.
Heading into this year’s election cycle, Meta announced it would be taking a step back from the space after facing criticism in the past for the role its platforms have played in the spread of misinformation. The company made good on its word in March when it introduced a new opt-out setting that restricted users from seeing political content from users they don’t follow.
However, this setting has proven controversial as it was on by default without notifying users of the change when Meta first introduced the feature. Furthermore, the setting would reset to its default state when users closed the app, further disrupting the reach of all political content.
While the company has since admitted the mistake of the setting turning back on when opening the app, it remains proud of its decision to limit its involvement in this year’s election.
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